The existing literature generally suggests that the sharing of firm-specific information related to firms' costs of production unambiguously reduces consumer welfare. This note shows that this result does not hold when consumers and least one firm is risk-averse, and consumer welfare is measured...

Criminal convictions result in expected losses due to stigmatization. The magnitude of these losses depend on, among other things, the convict's future expected earnings. People who face larger wage reductions due to convictions suffer more from stigmatization. Intuition suggests that this...

Preventive law enforcement increases social welfare by hindering the infliction of criminal harm, but produces inconvenience costs to the general public, because it requires interfering with the acts of innocents as well as attempters. This article shows that the optimal amount of investment in...

It is commonly assumed that potential offenders are more responsive to increases in the certainty than increases in the severity of punishment. An important implication of this assumption within the Beckerian law enforcement model is that criminals are risk-seeking. This note adds to existing...