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Oscilliations in the Enforcement of Law: an Evolutionary Analysis

Author

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  • Luciano Andreozzi

    (UniversitÓ degli Studi di Cassimo, Firenze, Italy)

Abstract

The 2┤2 inspection game has been frequently employed to model the problem of law enforcement. This game is notoriously troublesome, because (a) its unique Nash equilibrium is never strict and (b) by playing their maximin strategies players can secure the same payoff they get when both play their Nash equilibrium strategies. According to Holler (1993), this fact might explain why the economic approach to law enforcement is not likely to generate clear-cut predictions. In this paper I employ a standard replicator dynamics model to show that if the inspection game is played by two large populations of players then (a) oscillations in the level of enforcement and law infractions are likely to emerge, and (b) on average the frequency of law infractions equals the Nash equilibrium value, even if we assume that some of the players in both populations use their maximin strategies. The result holds for all payoff positive and payoff monotone dynamics. Some implications for the economic approach to law enforcement are discussed.

Suggested Citation

  • Luciano Andreozzi, 2002. "Oscilliations in the Enforcement of Law: an Evolutionary Analysis," Homo Oeconomicus, Institute of SocioEconomics, vol. 18, pages 403-428.
    • Handle: RePEc:hom:homoec:v:18:y:2002:p:403-428
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    Cited by:

    1. A. Antoci & S. Borghesi & G. Iannucci, 2016. "Green licenses and environmental corruption: a random matching model," Working Paper CRENoS 201615, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia.
    2. Puneet Agarwal & Kyle Hunt & Shivasubramanian Srinivasan & Jun Zhuang, 2020. "Fire Code Inspection and Compliance: A Game-Theoretic Model Between Fire Inspection Agencies and Building Owners," Decision Analysis, INFORMS, vol. 17(3), pages 208-226, September.
    3. Manfred J. Holler, 2013. "On Machiavelli’s conspiracy paradoxes," Chapters, in: Francisco Cabrillo & Miguel A. Puchades-Navarro (ed.), Constitutional Economics and Public Institutions, chapter 7, pages 125-145, Edward Elgar Publishing.
    4. Manfred Holler & Peter Skott, 2005. "Election campaigns, agenda setting and electoral outcomes," Public Choice, Springer, vol. 125(1), pages 215-228, July.
    5. Holler Manfred J., 2002. "Classical, Modern, and New Game Theory / Klassische, Moderne und Neue Spieltheorie," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 222(5), pages 556-583, October.
    6. Angelo Antoci & Simone Borghesi & Gianluca Iannucci, 2021. "(Dis)honest bureaucrats and (non)compliant firms in an evolutionary game," Metroeconomica, Wiley Blackwell, vol. 72(2), pages 321-344, May.
    7. Bryan Randolph Bruns, 2015. "Names for Games: Locating 2 × 2 Games," Games, MDPI, vol. 6(4), pages 1-26, October.
    8. Manfred J. Holler & Barbara Klose-Ullmann, 2008. "Wallenstein’s Power Problem and Its Consequences," Czech Economic Review, Charles University Prague, Faculty of Social Sciences, Institute of Economic Studies, vol. 2(3), pages 197-218, December.
    9. Josef Montag, 2013. "A radical change in traffic law: effects on fatalities in the Czech Republic," MENDELU Working Papers in Business and Economics 2013-39, Mendel University in Brno, Faculty of Business and Economics.

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