Crime Reporting: Profiling and Neighbourhood Observation
We consider the effect of giving incentives to ordinary citizens to report po- tential criminal activity. Additionally we look at the effect of "pro ling" and biased reporting. If police single out or pro le a group for more investiga- tion, then crime in the pro led group decreases. If a certain group is reported on more frequently through biased reporting by citizens, crime in the group reported on actually increases. In the second model, we consider a neigh- bourhood structure where individuals get information on possible criminal activity by neighbours on one side and decide whether to report or not based on the signal. When costs of reporting are low relative to the cost of being investigated, costs of investigation are increasing in the number of reports and there is at least one biased individual, we show there is a "contagion equilibrium" where everyone reports his or her neighbour.
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