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Gangs and Crime Deterrence

A framework is developed in which the formation of gangs --- the criminal market structure --- is endogenous. We examine the impact of crime deterrence in this framework. It is shown that for a given gang structure, an increase in deterrence reduces criminal output. However, under identifiable circumstances, an increase in deterrence can also lead to an increase in the number of competing criminal gangs and to an increase in total illegal output. Nous étudions un monde dans lequel la formation de gangs criminels est endogène, l'ensemble des gangs criminels constituant la structure de marché d'un bien illégal. Nous étudions l'impact de la dissuasion du crime dans un tel cadre. Pour une structure de marché donnée, accroître la dissuasion tend à réduire la production du bien illégal. Cependant, dans certains cas, accroître la dissuasion peut conduire a un accroissement du nombre de gangs criminels dans le marché et donc, à une plus grande concurrence. Il est alors possible que la production du bien illégal augmente.

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Paper provided by CREFE, Université du Québec à Montréal in its series Cahiers de recherche CREFE / CREFE Working Papers with number 138.

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Length: 29 pages
Date of creation: Sep 2001
Date of revision:
Handle: RePEc:cre:crefwp:138
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  1. Debraj Ray & Rajiv Vohra, 1998. "A Theory of Endogenous Coalition Structures," Working Papers 98-1, Brown University, Department of Economics, revised Jan 1998.
  2. Nuno Garoupa, 1997. "The economics of organized crime and optimal law enforcement," Economics Working Papers 246, Department of Economics and Business, Universitat Pompeu Fabra, revised Dec 1997.
  3. Gary S. Becker, 1968. "Crime and Punishment: An Economic Approach," Journal of Political Economy, University of Chicago Press, vol. 76, pages 169.
  4. Besley, Timothy, 1989. "Commodity taxation and imperfect competition : A note on the effects of entry," Journal of Public Economics, Elsevier, vol. 40(3), pages 359-367, December.
  5. Hart, Sergiu & Kurz, Mordecai, 1983. "Endogenous Formation of Coalitions," Econometrica, Econometric Society, vol. 51(4), pages 1047-64, July.
  6. Burbidge, John B. & James A. DePater & Gordon M. Meyers & Abhijit Sengupta, 1997. "A Coalition-Formation Approach to Equilibrium Federations and Trading Blocs," American Economic Review, American Economic Association, vol. 87(5), pages 940-56, December.
  7. Sylvaine Poret, 2001. "The Illicit Drug Market : Paradoxical Effects of Law Enforcement Policies," Working Papers 2001-02, Centre de Recherche en Economie et Statistique.
  8. Skaperdas, S. & Syropoulos, C., 1993. "Gangs as Primitive States," Papers 92-93-02, California Irvine - School of Social Sciences.
  9. Neher, Philip A, 1978. "The Pure Theory of the Muggery," American Economic Review, American Economic Association, vol. 68(3), pages 437-45, June.
  10. Caulkins Jonathan P., 1995. "Domestic Geographic Variation in Illicit Drug Prices," Journal of Urban Economics, Elsevier, vol. 37(1), pages 38-56, January.
  11. Bernheim, B. Douglas & Peleg, Bezalel & Whinston, Michael D., 1987. "Coalition-Proof Nash Equilibria I. Concepts," Journal of Economic Theory, Elsevier, vol. 42(1), pages 1-12, June.
  12. Nicolas Marceau & Gordon M. Myers, 2000. "From Foraging to Agriculture," Cahiers de recherche CREFE / CREFE Working Papers 103, CREFE, Université du Québec à Montréal.
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