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Sanctions are measures that one party (the sender) takes to influence the actions of another (the target). Sanctions, or the threat of sanctions, have been used, for example, by creditors to get a foreign sovereign to repay debt or by one government to influence the human rights, trade, or...
Persistent link: https://www.econbiz.de/10013233031
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/10013246066
observation that cartels keep participants in line through the threat of punishment, but they fail to explain two important … it is detected. We propose a theory of "equilibrium price cutting and business stealing" in cartels to bridge this gap …Though economists have made substantial progress toward formulating theories of collusion in industrial cartels that …
Persistent link: https://www.econbiz.de/10013056583
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/10013226564
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/10013125564
Cities generate negative, as well as positive, externalities; addressing those externalities requires both infrastructure and institutions. Providing clean water and removing refuse requires water and sewer pipes, but the urban poor are often unwilling to pay for the costs of that piping....
Persistent link: https://www.econbiz.de/10013000522
, police, prosecutors) to detect and to sanction violators of legal rules. We first present the basic elements of the theory …This article surveys the theory of the public enforcement of law -- the use of public agents (inspectors, tax auditors … examine a variety of extensions of the central theory, concerning accidental harms, costs of imposing fines, errors, general …
Persistent link: https://www.econbiz.de/10013216494
This paper examines the use of fines and imprisonment to deter individuals from engaging in harmful activities. These sanctions are analyzed separately as well as together, first for identical risk-neutral individuals and then for two groups of risk-neutral individuals who differ by wealth. When...
Persistent link: https://www.econbiz.de/10013218978
This paper contains a chapter on the general structure of the law from a forthcoming book, Foundations of Economic Analysis of Law (Harvard University Press, 2003). In this chapter, I consider basic features of the legal system, including whether the law directly constrains behavior or channels...
Persistent link: https://www.econbiz.de/10013220934
The present paper analyzes the competitive, monopolistic, and public enforcement of fines allowing for the costs of enforcement to differ by the choice of the enforcer. There are a number of reasons to expect such differences. First, the benefits from coordinating enforcement -- for example,...
Persistent link: https://www.econbiz.de/10013224885