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Multiple Activities for Socially-Connected Criminals

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  • Chen, Ying-Ju
  • Zenou, Yves
  • Zhou, Junjie

Abstract

We consider a network model where individuals exert efforts in two types of activities that are interdependent. These activities can be either substitutes or complements. We focus on criminals that either exert efforts in crime and education (substitutable activities) or crime and drug consumption (complementary activities). We provide a full characterization of the Nash equilibrium of this game for any network structure and show under which condition it exists and is unique. We then derive some comparative statics results that offer strong empirical predictions on the effect of own productivity on both efforts and how network density affects equilibrium outcomes. Finally, we re-examine the key-player policy that consists in determining the criminal who, once removed, reduces total crime the most. We show that, if the planner ignores the fact that criminals have multiple activities, then she can wrongly determine who the key player is.

Suggested Citation

  • Chen, Ying-Ju & Zenou, Yves & Zhou, Junjie, 2015. "Multiple Activities for Socially-Connected Criminals," CEPR Discussion Papers 10709, C.E.P.R. Discussion Papers.
  • Handle: RePEc:cpr:ceprdp:10709
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    References listed on IDEAS

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    Cited by:

    1. Ying‐Ju Chen & Yves Zenou & Junjie Zhou, 2018. "Competitive pricing strategies in social networks," RAND Journal of Economics, RAND Corporation, vol. 49(3), pages 672-705, September.
    2. Deng, Liuchun & Sun, Yufeng, 2017. "Criminal network formation and optimal detection policy: The role of cascade of detection," Journal of Economic Behavior & Organization, Elsevier, vol. 141(C), pages 43-63.

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    More about this item

    Keywords

    criminal networks; key player; multiple activities;
    All these keywords.

    JEL classification:

    • A14 - General Economics and Teaching - - General Economics - - - Sociology of Economics
    • D85 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Network Formation
    • K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law
    • Z13 - Other Special Topics - - Cultural Economics - - - Economic Sociology; Economic Anthropology; Language; Social and Economic Stratification

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