We consider the role of asymmetric information on the emergenceof collusion between criminals and enforcers, in the framework proposed by Bowles and Garoupa (1997) and Polinsky and Shavell (2001). Our paper proposes that the optimal criminal sanction for the underlying o®ense is not necessarily...

An agent decides whether to approve a project based on his information, some of which is verified by a court. An honest agent wants to implement projects that are likely to succeed; a dishonest agent wants to implement any project. If the project fails, the court examines the verifiable information...