Acconcia, Antonio; Immordino, Giovanni; Piccolo, Salvatore - Institut d'Économie Industrielle (IDEI), Toulouse … - 2013
We develop an agency model of organized crime accounting for the main trade-offs involved by the introduction of an accomplice-witness program. We characterize the optimal policy and identify its main determinants in a framework where public officials can be dishonest. Our predictions are tested...