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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...
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Becker's theory of crime, penalties must be at least as high as expected benefits to deter crimes. For example, we start by … multiplying cartel infringement by the reciprocal of the probability of detection and punishment. When we factor in expected … personal benefits. In theory, deterrence to participate in cartel activities must be based both on the incentives of firms as a …
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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/10012474901
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...
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