Kim, Jeong-Yoo - In: European Journal of Law and Economics 36 (2013) 1, pp. 131-138
This paper reconsiders the problem of optimal law enforcement when the apprehension probability depends on the offense … multiplicity of the equilibrium due to strategic complementarity, and the actual offense rate is realized by the self …-fulfilling nature of the offense rate. If people believe that lowering the fine will lead to a lower offense rate, each individual will …