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Delinquent Networks

Coralio Ballester (), Antoni Calvó-Armengol and Yves Zenou ()

Journal of the European Economic Association, 2010, vol. 8, issue 1, 34-61

Abstract: Delinquents are embedded in a network of relationships. Each delinquent decides in a non-cooperative way how much delinquency effort he will exert. We characterize the Nash equilibrium and derive an optimal enforcement policy, called the key-player policy. We then extend our characterization of optimal single player network removal to optimal group removal, the key group. We also characterize and derive a policy that targets links rather than players. Finally, we endogenize the network connecting delinquents by allowing players to join the labor market instead of committing delinquent offenses. The key-player policy turns out to be much more complex because it depends on wages and on the structure of the network. (JEL: A14, C72, K42, L14) (c) 2010 by the European Economic Association.

JEL-codes: A14 C72 K42 L14 (search for similar items in EconPapers)
Date: 2010
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Journal of the European Economic Association is currently edited by Xavier Vives, George-Marios Angeletos, Orazio P. Attanasio, Fabio Canova and Roberto Perotti

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