On the deterrent effect of individual versus collective liability in criminal organizations
Our paper addresses the question of the deterrent effect of a monetary sanction associated to a collective rather than an individual liability, when crimes are realized within a hierarchical gang (defined as a criminal organization where the leader is a sleeping partner, and several agents are active partners in the illegal or criminal activity). We develop a model where the active gang members face contradictory incentives to commit a crime. On the one hand, public authorities try to deter each gang member by imposing sanctions; on the second, the leader of the gang try to keep his members enough active in the gang by threatening them of private sanctions. We show that sanctions based on individual liability are inefficient to deter gang’s members since the leader overreacts on the public sanctions. In contrast, we show that a regime of collective liability, allowing the judge to sanction the sleeping partner even if he hasn’t realized any crime himself, can reach enough deterrence of the members of the gang.
|Date of creation:||2009|
|Date of revision:||2009|
|Contact details of provider:|| Postal: |
Web page: http://repec.cerefige.univ-lorraine.fr
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Glaeser, Edward L & Sacerdote, Bruce & Scheinkman, Jose A, 1996.
"Crime and Social Interactions,"
The Quarterly Journal of Economics,
MIT Press, vol. 111(2), pages 507-48, May.
- Edward L. Glaeser & Bruce Sacerdote & Jose A. Scheinkman, 1995. "Crime and Social Interactions," NBER Working Papers 5026, National Bureau of Economic Research, Inc.
- Edward E. Glaeser & Bruce Sacerdote & Jose A. Scheinkman, 1995. "Crime and Social Interactions," Harvard Institute of Economic Research Working Papers 1738, Harvard - Institute of Economic Research.
- Drew Fudenberg & Jean Tirole, 1991. "Game Theory," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262061414, June.
- Sah, R.K., 1990.
"Social Osmosis And Patterns Of Crime: A Dynamic Economic Analysis,"
609, Yale - Economic Growth Center.
- Gary S. Becker, 1974.
"Crime and Punishment: An Economic Approach,"
in: Essays in the Economics of Crime and Punishment, pages 1-54
National Bureau of Economic Research, Inc.
- Privileggi, Fabio & Marchese, Carla & Cassone, Alberto, 2001. "Agent's liability versus principal's liability when attitudes toward risk differ," International Review of Law and Economics, Elsevier, vol. 21(2), pages 181-195, June.
- Sylvaine PORET, 2005.
"Structure verticale d’un réseau de distribution de drogues illicites et politique répressive optimale,"
Discussion Papers (REL - Recherches Economiques de Louvain)
2005043, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
- Sylvaine Poret, 2005. "Structure verticale d'un réseau de distribution de drogues illicites et politique répressive optimale," Recherches économiques de Louvain, De Boeck Université, vol. 71(4), pages 391-412.
- Sylvaine Poret, 2002. "Structure verticale d’un réseau de distribution de drogues illicites et politique répressive optimale," Working Papers 2002-07, Centre de Recherche en Economie et Statistique.
- 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.
- Garoupa, Nuno, 2000. "The Economics of Organized Crime and Optimal Law Enforcement," Economic Inquiry, Western Economic Association International, vol. 38(2), pages 278-88, April.
- Patacchini, Eleonora & Zenou, Yves, 2005. "Crime and Conformism," CEPR Discussion Papers 5331, C.E.P.R. Discussion Papers.
- Garoupa, Nuno, 2007.
"Optimal law enforcement and criminal organization,"
Journal of Economic Behavior & Organization,
Elsevier, vol. 63(3), pages 461-474, July.
- Case, A.C. & Katz, L.F., 1991.
"The Company You Keep: The Effects Of Family And Neighborhood On Disadvantaged Younths,"
Harvard Institute of Economic Research Working Papers
1555, Harvard - Institute of Economic Research.
- Anne C. Case & Lawrence F. Katz, 1991. "The Company You Keep: The Effects of Family and Neighborhood on Disadvantaged Youths," NBER Working Papers 3705, National Bureau of Economic Research, Inc.
- A. Mitchell Polinsky & Steven Shavell, 1999.
"The Economic Theory of Public Enforcement of Law,"
NBER Working Papers
6993, National Bureau of Economic Research, Inc.
- Konrad, Kai A. & Skaperdas, Stergios, 1997. "Credible threats in extortion," Journal of Economic Behavior & Organization, Elsevier, vol. 33(1), pages 23-39, May.
- Shavell, Steven, 1997. "The optimal level of corporate liability given the limited ability of corporations to penalize their employees," International Review of Law and Economics, Elsevier, vol. 17(2), pages 203-213, June.
- Abdala Mansour & Nicolas Marceau & Steeve Mongrain, 2006.
"Gangs and Crime Deterrence,"
Journal of Law, Economics and Organization,
Oxford University Press, vol. 22(2), pages 315-339, October.
When requesting a correction, please mention this item's handle: RePEc:fie:wpaper:0903. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Sebastien Liarte)
If references are entirely missing, you can add them using this form.