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Tempting Righteous Citizens? On the Counterintuitive Effects of Increasing Sanctions

Tim Friehe

No 2011-09, Working Paper Series of the Department of Economics, University of Konstanz from Department of Economics, University of Konstanz

Abstract: This paper demonstrates that increasing the expected sanctions for a crime may increase this crime's prevalence, using a principal-agent model with different crimes. The intuition is that the policy change may increase the principal's expected payoff from crime by decreasing the information rent required by the agent.

Keywords: Crime; principal-agent relation; information rent (search for similar items in EconPapers)
JEL-codes: H23 K42 (search for similar items in EconPapers)
Pages: 9 pages
Date: 2011-05-05
New Economics Papers: this item is included in nep-cta and nep-law
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Persistent link: https://EconPapers.repec.org/RePEc:knz:dpteco:1109

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