This paper develops a simple model of the war against illegal drugs in producer and consumer countries. Our analysis shows how the equilibrium quantity of illegal drugs, as well as their price, depends on key parameters of the model, among them the price elasticity of demand, and the...

This paper theoretically assesses the role that uncertainty plays in the intensity of conflicts. The standard two-player rent-seeking contest model (Tullock, 1980) is extended to allow for privately known subjective values of the prize. The conflict is modeled as a Bayesian game on which each...

In this paper, we study how between-group wealth and size heterogeneity affect success probabilities as well as aggregate rent-seeking efforts when two groups compete for the allocation of a pure public good. Unlike with previous models, we measure the utility cost of rent-seeking in terms of...

We investigate if there is any effect on crime following the installation of public surveillance cameras. To do so, we benefit from a quasi-experiment that took place in Medellin, Colombia with the installation of 587 cameras between 2013 and 2015. We highlight three main findings. First, there...

This article tackles the feature of optimal public policy such as the level of enforcement and the supply of public goods in an economy characterized by a huge informal sector. We consider informality as the group of productive activities which, before hand, do not comply (totally or partially)...

This paper develops an incomplete information model wherein individuals face a trade-off between status and security when deciding the optimal amount of conspicuous consumption. On the one hand, we assume that individuals derive utility from status, which is obtained by signaling wealth through...