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Ambiguity and enforcement

Author

Listed:
  • Evan M. Calford

    (Australian National University)

  • Gregory DeAngelo

    (Claremont Graduate University)

Abstract

Law enforcement officials face numerous decisions regarding their enforcement choices. One important decision, that is often controversial, is the amount of knowledge that law enforcement distributes to the community regarding their policing strategies. Assuming the goal is to minimize criminal activity (alternatively, maximize citation rates), our theoretical analysis suggests that agencies should reveal (shroud) their resource allocation if criminals are uncertainty seeking, and shroud (reveal) their allocation if criminals are uncertainty averse. We run a laboratory experiment to test our theoretical framework, and find that enforcement behavior is approximately optimal given the observed non-expected utility uncertainty preferences of criminals.

Suggested Citation

  • Evan M. Calford & Gregory DeAngelo, 2023. "Ambiguity and enforcement," Experimental Economics, Springer;Economic Science Association, vol. 26(2), pages 304-338, April.
    • Handle: RePEc:kap:expeco:v:26:y:2023:i:2:d:10.1007_s10683-022-09755-w
    DOI: 10.1007/s10683-022-09755-w
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    More about this item

    Keywords

    Law enforcement; Strategic uncertainty; Experimental economics; Ambiguity aversion;
    All these keywords.

    JEL classification:

    • K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law
    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty
    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design

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