Acconcia, Antonio; Immordino, Giovanni; Piccolo, Salvatore - In: Scandinavian Journal of Economics 116 (2014) 4, pp. 1116-1159
We develop an agency model of organized crime accounting for the main trade-offs involved in the introduction of an accomplice-witness program. We characterize the optimal policy and identify its main determinants in a framework where public officials can be dishonest. Our predictions are tested...