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Horizon-K Farsightedness in Criminal Networks

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  • Herings, P. Jean-Jacques

    (RS: GSBE Theme Data-Driven Decision-Making, RS: GSBE Theme Conflict & Cooperation, Microeconomics & Public Economics)

  • Mauleon, Ana
  • Vannetelbosch, Vincent

Abstract

We study the criminal networks that will emerge in the long run when criminals are neither myopic nor completely farsighted but have some limited degree of farsightedness. We adopt the horizon-K farsighted set of Herings, Mauleon and Vannetelbosch (2019) to answer this question. We find that in criminal networks with n criminals, the set consisting of the complete network is a horizon-K farsighted set whenever the degree of farsightedness of the criminals is larger than or equal to (n 1). Moreover, the complete network is the unique horizon-(n 1) farsighted set. Hence, the predictions obtained in case of completely farsighted criminals still hold when criminals are much less farsighted.

Suggested Citation

  • Herings, P. Jean-Jacques & Mauleon, Ana & Vannetelbosch, Vincent, 2021. "Horizon-K Farsightedness in Criminal Networks," Research Memorandum 008, Maastricht University, Graduate School of Business and Economics (GSBE).
  • Handle: RePEc:unm:umagsb:2021008
    DOI: 10.26481/umagsb.2021008
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    JEL classification:

    • A14 - General Economics and Teaching - - General Economics - - - Sociology of Economics
    • C70 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - General
    • D20 - Microeconomics - - Production and Organizations - - - General

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