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A Note on the Effects of State-Dependent Benefits on Optimal Law Enforcement

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  • Mungan Murat C

    (Boston College and George Mason University)

Abstract

In the Beckerian crime and deterrence model, maximal fines are optimal. Many models have identified conditions under which this conclusion no longer holds. This note adds to the existing literature by presenting an extension to the standard crime and deterrence model, and shows that if criminals' benefits are state-dependent in a particular way, then maximal fines need not be optimal. It also provides a formal framework for analyzing state-dependent benefits within the context of crime and deterrence.

Suggested Citation

  • Mungan Murat C, 2010. "A Note on the Effects of State-Dependent Benefits on Optimal Law Enforcement," Review of Law & Economics, De Gruyter, vol. 6(1), pages 97-106, May.
    • Handle: RePEc:bpj:rlecon:v:6:y:2010:i:1:n:4
    DOI: 10.2202/1555-5879.1411
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    References listed on IDEAS

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    1. Gary S. Becker, 1974. "Crime and Punishment: An Economic Approach," NBER Chapters, in: Essays in the Economics of Crime and Punishment, pages 1-54, National Bureau of Economic Research, Inc.
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    Cited by:

    1. Mungan, Murat C., 2012. "Don’t Say You’re Sorry Unless You Mean It: Pricing apologies to achieve credibility," International Review of Law and Economics, Elsevier, vol. 32(1), pages 178-187.
    2. Thomas J. Miceli & Murat C. Mungan, 2021. "The limit of law: factors influencing the decision to make harmful acts illegal," Economics of Governance, Springer, vol. 22(3), pages 293-307, September.

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