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Previous findings on punishment have focused on environments in which the outcomes are known with certainty. In this … paper, we conduct experiments to investigate how punishment affects cooperation in a two-person stochastic prisoner … specified probabilistically under a transparent information condition. In particular, we study two types of punishment …
Persistent link: https://www.econbiz.de/10012460202
vigilante justice, as represented by peer-to-peer punishment, to delegated policing, as represented by the "hired gun" mechanism …
Persistent link: https://www.econbiz.de/10012461626
Although decades of empirical research has demonstrated that criminal behavior responds to incentives, non … incentives. However, scientific research should not be driven by personal beliefs. Whether or not economic conditions matter or …, the original findings of Mocan and Gittings (2003) are robust, providing evidence that people indeed react to incentives …
Persistent link: https://www.econbiz.de/10012466030
examine whether information on the offered incentives improves reports about a known objective prior. We find that transparent … information on incentives gives rise to error rates in excess of 40 percent, and that only 15 percent of participants consistently … report the truth. False reports are conservative and appear to result from a biased perception of the BSR incentives. While …
Persistent link: https://www.econbiz.de/10012481521
Team incentives are important in many compensation systems that pay workers according to the output of their team as … contrast the performance of lower ability participants and higher ability participants in an experiment with three distribution …
Persistent link: https://www.econbiz.de/10013388782
This article surveys the theory of the public enforcement of law -- the use of public agents (inspectors, tax auditors …, police, prosecutors) to detect and to sanction violators of legal rules. We first present the basic elements of the theory … examine a variety of extensions of the central theory, concerning accidental harms, costs of imposing fines, errors, general …
Persistent link: https://www.econbiz.de/10012471807
A number of recent antitrust lawsuits have been settled with discount contracts in which the defendants agree in the future to sell to the plaintiffs at a discount off of the price they offer to other buyers. Economists often object to such settlements, arguing that the sellers will partially or...
Persistent link: https://www.econbiz.de/10012473802
This article derives the optimal award to a winning plaintiff and the optimal penalty on a losing plaintiff when the probability of prevailing varies among plaintiffs. Optimality is defined in terms of achieving a specified degree of deterrence of potential injurers with the lowest litigation...
Persistent link: https://www.econbiz.de/10012474438
This paper considers optimal enforcement when individuals may be imperfectly informed about the probability of apprehension. When individuals are perfectly informed, optimal sanctions are maximal because, as Gary Becker (1968) suggested, society can economize on enforcement resources by reducing...
Persistent link: https://www.econbiz.de/10012474900
This paper explores how optimal enforcement is affected by the fact that not all individuals are equally easy to apprehend. When the probability of apprehension is the same for all individuals, optimal sanctions will be maximal: as Gary Becker (1968) suggested, raising sanctions and reducing the...
Persistent link: https://www.econbiz.de/10012474901