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Subgame Perfect Punishment for Repeat Offenders

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  • Winand Emons

Abstract

First we show that for wealth-constrained agents who may commit an act twice the optimal sanctions are the offender's entire wealth for the first and zero for the second crime. Then we ask the question whether this decreasing sanction scheme is subgame perfect (time consistent), i.e., does a rent-seeking government stick to this sanction scheme after the first crime has occurred. If the benefit and/or the harm from the crime are not too large, this is indeed the case; otherwise, equal sanctions for both crimes are optimal.

Suggested Citation

  • Winand Emons, 2002. "Subgame Perfect Punishment for Repeat Offenders," Diskussionsschriften dp0211, Universitaet Bern, Departement Volkswirtschaft.
    • Handle: RePEc:ube:dpvwib:dp0211
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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.
    2. Landsberger, Michael & Meilijson, Isaac, 1982. "Incentive generating state dependent penalty system : The case of income tax evasion," Journal of Public Economics, Elsevier, vol. 19(3), pages 333-352, December.
    3. Boadway, Robin & Keen, Michael, 1998. "Evasion and Time Consistency in the Taxation of Capital Income," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 39(2), pages 461-476, May.
    4. Steven Shavell & A. Mitchell Polinsky, 2000. "The Economic Theory of Public Enforcement of Law," Journal of Economic Literature, American Economic Association, vol. 38(1), pages 45-76, March.
    5. Polinsky, A. Mitchell & Shavell, Steven, 1998. "On offense history and the theory of deterrence," International Review of Law and Economics, Elsevier, vol. 18(3), pages 305-324, September.
    6. Burnovski, Moshe & Safra, Zvi, 1994. "Deterrence effects of sequential punishment policies: Should repeat offenders be more severely punished?," International Review of Law and Economics, Elsevier, vol. 14(3), pages 341-350, September.
    7. Nuno Garoupa & Daniel Klerman, 2002. "Optimal Law Enforcement with a Rent-Seeking Government," American Law and Economics Review, American Law and Economics Association, vol. 4(1), pages 116-140, January.
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    Citations

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    Cited by:

    1. Miceli Thomas J., 2012. "Deterred or Detained? A Unified Model of Criminal Punishment," Review of Law & Economics, De Gruyter, vol. 8(1), pages 1-20, March.
    2. Miceli Thomas J. & Bucci Catherine, 2005. "A Simple Theory of Increasing Penalties for Repeat Offenders," Review of Law & Economics, De Gruyter, vol. 1(1), pages 71-80, April.
    3. Isabel Strecker, 2024. "Gambling bank behaviour, incentive mechanism, and sanctions: A two-stage model," Journal of Banking Regulation, Palgrave Macmillan, vol. 25(2), pages 197-208, June.
    4. Emons, Winand, 2007. "Escalating penalties for repeat offenders," International Review of Law and Economics, Elsevier, vol. 27(2), pages 170-178.
    5. Loss, Frederic & Malavolti-Grimal, Estelle & Verge, Thibaud & Berges-Sennou, Fabian, 2008. "European competition policy modernization: From notifications to legal exception," European Economic Review, Elsevier, vol. 52(1), pages 77-98, January.
    6. Lisa R. Anderson & Gregory DeAngelo & Winand Emons & Beth Freeborn & Hannes Lang, 2017. "Penalty Structures And Deterrence In A Two-Stage Model: Experimental Evidence," Economic Inquiry, Western Economic Association International, vol. 55(4), pages 1833-1867, October.
    7. Matthew Baker & Thomas Miceli, 2005. "Credible Criminal Enforcement," European Journal of Law and Economics, Springer, vol. 20(1), pages 5-15, July.
    8. Thomas J. Miceli, 2009. "Deterrence and Incapacitation Models of Criminal Punishment: Can the Twain Meet?," Working papers 2009-25, University of Connecticut, Department of Economics.
    9. Mungan Murat C., 2013. "Optimal Warning Strategies: Punishment Ought Not to Be Inflicted Where the Penal Provision Is Not Properly Conveyed," Review of Law & Economics, De Gruyter, vol. 9(3), pages 303-339, November.
    10. Wolfgang Eggert & Steffen Minter & Maximilian Stephan & Handirk Ungern-Sternberg, 2017. "Sanctions for repeat offenders: a question of wealth?," Scottish Journal of Political Economy, Scottish Economic Society, vol. 64(5), pages 467-482, November.
    11. Stan Miles & Derek Pyne, 2015. "Deterring repeat offenders with escalating penalty schedules: a Bayesian approach," Economics of Governance, Springer, vol. 16(3), pages 229-250, August.
    12. Leandro Arozamena & Martin Besfamille & Pablo Sanguinetti, 2010. "Optimal taxes and penalties when the government cannot commit to its audit policy," Department of Economics Working Papers 2010-10, Universidad Torcuato Di Tella.
    13. Roger Bowles & Chrisostomos Florackis, 2012. "Impatience, reputation and offending," Applied Economics, Taylor & Francis Journals, vol. 44(2), pages 177-187, January.
    14. Tim Friehe, 2009. "Escalating penalties for repeat offenders: a note on the role of information," Journal of Economics, Springer, vol. 97(2), pages 165-183, June.
    15. Mungan, Murat C., 2010. "Repeat offenders: If they learn, we punish them more severely," International Review of Law and Economics, Elsevier, vol. 30(2), pages 173-177, June.
    16. repec:ebl:ecbull:v:11:y:2005:i:2:p:1-7 is not listed on IDEAS
    17. Rousseau, Sandra, 2009. "The use of warnings in the presence of errors," International Review of Law and Economics, Elsevier, vol. 29(3), pages 191-201, September.

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    More about this item

    Keywords

    crime and punishment; repeat offenders; subgame perfection;
    All these keywords.

    JEL classification:

    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
    • K41 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Litigation Process
    • K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law

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