IDEAS home Printed from https://ideas.repec.org/p/pra/mprapa/90792.html
   My bibliography  Save this paper

Overdeterrence of repeat offenders when penalties for first-time offenders are restricted

Author

Listed:
  • Müller, Daniel
  • Schmitz, Patrick W.

Abstract

When penalties for first-time offenders are restricted, it is typically optimal for the lawmaker to overdeter repeat offenders. First-time offenders are then deterred not only by the (restricted) fine for a first offense, but also by the prospect of a large fine for a subsequent offense. Now suppose the restriction on penalties for first-time offenders is relaxed; i.e., larger fines for a first offense become enforceable. Should overdeterrence of repeat offenders now be reduced? We show that this is the case only if the original restriction was not very strong. Otherwise, overdeterrence of repeat offenders should actually be further amplified.

Suggested Citation

  • Müller, Daniel & Schmitz, Patrick W., 2015. "Overdeterrence of repeat offenders when penalties for first-time offenders are restricted," MPRA Paper 90792, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:90792
    as

    Download full text from publisher

    File URL: https://mpra.ub.uni-muenchen.de/90792/1/MPRA_paper_90792.pdf
    File Function: original version
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Mitchell Polinsky, A. & Rubinfeld, Daniel L., 1991. "A model of optimal fines for repeat offenders," Journal of Public Economics, Elsevier, vol. 46(3), pages 291-306, December.
    2. A. Mitchell Polinsky & Steven Shavell (ed.), 2007. "Handbook of Law and Economics," Handbook of Law and Economics, Elsevier, edition 1, volume 2, number 2.
    3. Polinsky, A. Mitchell & Shavell, Steven, 2007. "The Theory of Public Enforcement of Law," Handbook of Law and Economics, in: A. Mitchell Polinsky & Steven Shavell (ed.), Handbook of Law and Economics, edition 1, volume 1, chapter 6, pages 403-454, Elsevier.
    4. Chu, C. Y. Cyrus & Hu, Sheng-cheng & Huang, Ting-yuan, 2000. "Punishing repeat offenders more severely," International Review of Law and Economics, Elsevier, vol. 20(1), pages 127-140, March.
    5. Polinsky, A. Mitchell & Shavell, Steven, 1998. "On offense history and the theory of deterrence," International Review of Law and Economics, Elsevier, vol. 18(3), pages 305-324, September.
    6. Bin R. Chen & Y. Stephen Chiu, 2013. "Interim Performance Evaluation in Contract Design," Economic Journal, Royal Economic Society, vol. 123, pages 665-698, June.
    7. Schmitz, Patrick W., 2000. "On the joint use of liability and safety regulation," International Review of Law and Economics, Elsevier, vol. 20(3), pages 371-382, September.
    8. Nieken, Petra & Schmitz, Patrick W., 2012. "Repeated moral hazard and contracts with memory: A laboratory experiment," Games and Economic Behavior, Elsevier, vol. 75(2), pages 1000-1008.
    9. Pi, Jiancai, 2014. "Job design with sequential tasks and outcome externalities revisited," Economics Letters, Elsevier, vol. 125(2), pages 274-277.
    10. Tsai Tsung-Sheng & Kung Sheng-Chiao, 2011. "Sequential Investments, Know-How Transmission, and Optimal Organization," The B.E. Journal of Theoretical Economics, De Gruyter, vol. 11(1), pages 1-24, December.
    11. Kräkel, Matthias & Schöttner, Anja, 2010. "Minimum wages and excessive effort supply," Economics Letters, Elsevier, vol. 108(3), pages 341-344, September.
    12. Kaplow, Louis & Shavell, Steven, 2002. "Economic analysis of law," Handbook of Public Economics, in: A. J. Auerbach & M. Feldstein (ed.), Handbook of Public Economics, edition 1, volume 3, chapter 25, pages 1661-1784, Elsevier.
    13. Patrick W. Schmitz, 2005. "Should Contractual Clauses that Forbid Renegotiation Always be Enforced?," The Journal of Law, Economics, and Organization, Oxford University Press, vol. 21(2), pages 315-329, October.
    14. Rubinstein, Ariel, 1980. "On an anomaly of the deterrent effect of punishment," Economics Letters, Elsevier, vol. 6(1), pages 89-94.
    15. Susanne Ohlendorf & Patrick W. Schmitz, 2012. "Repeated Moral Hazard And Contracts With Memory: The Case Of Risk‐Neutrality," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 53(2), pages 433-452, May.
    16. A. Mitchell Polinsky & Steven Shavell (ed.), 2007. "Handbook of Law and Economics," Handbook of Law and Economics, Elsevier, edition 1, volume 1, number 1.
    17. George J. Stigler, 1974. "The Optimum Enforcement of Laws," NBER Chapters, in: Essays in the Economics of Crime and Punishment, pages 55-67, National Bureau of Economic Research, Inc.
    18. Steven Shavell, 1984. "A Model of the Optimal Use of Liability and Safety Regulation," RAND Journal of Economics, The RAND Corporation, vol. 15(2), pages 271-280, Summer.
    19. Thomas J. Miceli, 2013. "Escalating Penalties for Repeat Offenders: Why are they So Hard to Explain?," Journal of Institutional and Theoretical Economics (JITE), Mohr Siebeck, Tübingen, vol. 169(4), pages 587-604, December.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Jiancai Pi, 2018. "Another Look at Job Design with Conflicting Tasks," Australian Economic Papers, Wiley Blackwell, vol. 57(4), pages 427-434, December.
    2. Buehler, Stefan & Nicolas Eschenbaum, 2018. "Explaining Escalating Fines and Prices: The Curse of Positive Selection," Economics Working Paper Series 1807, University of St. Gallen, School of Economics and Political Science.
    3. Leshem, Shmuel & Tabbach, Avraham, 2023. "The option value of record-based sanctions," Games and Economic Behavior, Elsevier, vol. 137(C), pages 1-22.
    4. Buehler, Stefan & Eschenbaum, Nicolas, 2020. "Explaining escalating prices and fines: A unified approach," Journal of Economic Behavior & Organization, Elsevier, vol. 171(C), pages 153-164.
    5. Alex Raskolnikov, 2020. "Criminal Deterrence: A Review of the Missing Literature," Supreme Court Economic Review, University of Chicago Press, vol. 28(1), pages 1-59.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Stan Miles & Derek Pyne, 2015. "Deterring repeat offenders with escalating penalty schedules: a Bayesian approach," Economics of Governance, Springer, vol. 16(3), pages 229-250, August.
    2. Buehler, Stefan & Nicolas Eschenbaum, 2018. "Explaining Escalating Fines and Prices: The Curse of Positive Selection," Economics Working Paper Series 1807, University of St. Gallen, School of Economics and Political Science.
    3. Tim Friehe, 2009. "Escalating penalties for repeat offenders: a note on the role of information," Journal of Economics, Springer, vol. 97(2), pages 165-183, June.
    4. Mungan, Murat C., 2014. "A behavioral justification for escalating punishment schemes," International Review of Law and Economics, Elsevier, vol. 37(C), pages 189-197.
    5. Leshem, Shmuel & Tabbach, Avraham, 2023. "The option value of record-based sanctions," Games and Economic Behavior, Elsevier, vol. 137(C), pages 1-22.
    6. A. Mitchell Polinsky & Steven Shavell, 2009. "Public Enforcement of Law," Chapters, in: Nuno Garoupa (ed.), Criminal Law and Economics, chapter 1, Edward Elgar Publishing.
    7. Lisa R. Anderson & Gregory DeAngelo & Winand Emons & Beth Freeborn & Hannes Lang, 2017. "Penalty Structures And Deterrence In A Two-Stage Model: Experimental Evidence," Economic Inquiry, Western Economic Association International, vol. 55(4), pages 1833-1867, October.
    8. Marcel Boyer & Donatella Porrini, 2010. "Optimal liability sharing and court errors: an exploratory analysis," Working Papers hal-00463913, HAL.
    9. Boyer, Marcel & Porrini, Donatella, 2011. "The impact of court errors on liability sharing and safety regulation for environmental/industrial accidents," International Review of Law and Economics, Elsevier, vol. 31(1), pages 21-29, March.
    10. Emons, Winand, 2007. "Escalating penalties for repeat offenders," International Review of Law and Economics, Elsevier, vol. 27(2), pages 170-178.
    11. Allard van der Made, 2019. "Graduated Punishments in Public Good Games," Southern Economic Journal, John Wiley & Sons, vol. 85(3), pages 939-959, January.
    12. Derek Pyne, 2010. "When is it efficient to treat juvenile offenders more leniently than adult offenders?," Economics of Governance, Springer, vol. 11(4), pages 351-371, November.
    13. Mungan Murat C., 2013. "Optimal Warning Strategies: Punishment Ought Not to Be Inflicted Where the Penal Provision Is Not Properly Conveyed," Review of Law & Economics, De Gruyter, vol. 9(3), pages 303-339, November.
    14. Thomas J. Miceli, 2009. "Deterrence and Incapacitation Models of Criminal Punishment: Can the Twain Meet?," Working papers 2009-25, University of Connecticut, Department of Economics.
    15. Mungan, Murat C., 2017. "Reducing crime through expungements," Journal of Economic Behavior & Organization, Elsevier, vol. 137(C), pages 398-409.
    16. Thomas J. Miceli, 2008. "Deterrence, Incapacitation, and Repeat Offenders," Working papers 2008-44, University of Connecticut, Department of Economics.
    17. Baumann, Florian & Friehe, Tim, 2012. "Self-report to self-control? A note," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 41(5), pages 727-729.
    18. Nicolas Vaillant & François-Charles Wolff, 2010. "Does punishment of minor sexual offences deter rapes? Longitudinal evidence from France," European Journal of Law and Economics, Springer, vol. 30(1), pages 59-71, August.
    19. Wolfgang Eggert & Steffen Minter & Maximilian Stephan & Handirk Ungern-Sternberg, 2017. "Sanctions for repeat offenders: a question of wealth?," Scottish Journal of Political Economy, Scottish Economic Society, vol. 64(5), pages 467-482, November.
    20. Mongrain, Steeve & Roberts, Joanne, 2009. "Plea bargaining with budgetary constraints," International Review of Law and Economics, Elsevier, vol. 29(1), pages 8-12, March.

    More about this item

    Keywords

    limited liability; incentives; repeat offenders; penalties; law enforcement;
    All these keywords.

    JEL classification:

    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
    • K14 - Law and Economics - - Basic Areas of Law - - - Criminal Law
    • L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:90792. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Joachim Winter (email available below). General contact details of provider: https://edirc.repec.org/data/vfmunde.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.