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diversion of resources from production unless the members of a given mini-society can abide by norms of non-theft or engage in … theft and most groups achieve much greater efficiency in the presence of communication. Ease of identifying who has engaged … in theft varies across the two communication treatments, but is of minor importance to the outcome. We find several …
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We develop a theoretical model to study how changes in the durability of the goods affects prices of stolen goods, the incentives to steal and the equilibrium crime rate. When studying the production of durable goods, we find that the presence of crime affects consumer and producer surplus and...
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