Ballester, Coralio; Calvó-Armengol, Antoni; Zenou, Yves - In: Journal of the European Economic Association 8 (2010) 1, pp. 34-61
Delinquents are embedded in a network of relationships. Each delinquent decides in a non-cooperative way how much delinquency effort he will exert. We characterize the Nash equilibrium and derive an optimal enforcement policy, called the key-player policy. We then extend our characterization of...