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In a high-crime environment with many high-income citizens, private security companies which offer protection against … crime can flourish. In this article crime is modelled as a game where richer victims yield a higher return on crime, but … with decreasing returns to crime as more criminals choose crime to supplement their income. Private security providers …
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On the Internet it is easy for someone to obtain a new identity. This introduces opportunities to misbehave without paying reputational consequences. A large degree of cooperation can still emerge, through a convention in which newcomers "pay their dues" by accepting poor treatment from players...
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