Penalty Structures and Deterrence in a Two-Stage Model: Experimental Evidence

Date: 2015-04
By: Lisa R. Anderson
Gregory DeAngelo
Winand Emons
Beth Freeborn
Hannes Lang
URL: http://d.repec.org/n?u=RePEc:ube:dpvwib:dp1505&r=net
Increasing penalty structures for repeat offenses are ubiquitous in penal codes, despite little empirical or theoretical support. Multi-period models of criminal enforcement based on the standard economic approach of Becker (1968) generally find that the optimal penalty structure is either flat or declining. We experimentally test a two-stage theoretical model that predicts decreasing penalty structures will yield greater deterrence than increasing penalty structures. We find that decreasing fine structures are more effective at reducing risky behavior. Additionally, our econometric analyses reveal a number of behavioral findings. Subjects are deterred by past convictions, even though the probability of detection is independent across decisions. Further, subjects appear to take the two-stage nature of the decision making task into account, suggesting that subjects consider both current and future penalties. Even controlling for the fine a subject faces for any given decision, being in a decreasing fine structure has a significant effect on deterrence.
JEL: C91 K42 K10

發表迴響

在下方填入你的資料或按右方圖示以社群網站登入:

WordPress.com 標誌

您的留言將使用 WordPress.com 帳號。 登出 /  變更 )

Google photo

您的留言將使用 Google 帳號。 登出 /  變更 )

Twitter picture

您的留言將使用 Twitter 帳號。 登出 /  變更 )

Facebook照片

您的留言將使用 Facebook 帳號。 登出 /  變更 )

連結到 %s