Yerokhin, Oleg - School of Accounting, Economics, and Finance, … - 2011
Despite the fact that blackmail constitutes a voluntary transaction between two parties, it is deemed to be a criminal … offence in most legal systems. Traditional economic approach to this so-called ‘paradox of blackmail’ emphasizes welfare loss … case of blackmail? This paper addresses these questions in a simple model of bargaining under asymmetric information which …