2005
DOI: 10.1093/ei/cbi046
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Organized Crime or Individual Crime? Endogenous Size of a Criminal Organization and the Optimal Law Enforcement

Abstract: This article develops a simple but general criminal decision framework in which individual crime and organized crime are coexisting alternatives to a potential offender. It enables us to endogenize the size of a criminal organization and explore interactive relationships among sizes of criminal organization, the crime rate, and the government's law enforcement strategies. We show that the method adopted to allocate the criminal organization's payoffs and the extra benefit provided by the criminal organization … Show more

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Cited by 68 publications
(32 citation statements)
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“…Fiorentini and Peltzman (1995) provide the best and most comprehensive collection of essays that consider the economics of criminal organization. In addition, a large literature discusses the economic impact of organized crime, activities of criminal organizations, optimal strategies for preventing organized crime, and reasons for its emergence (see also, e.g., Anderson 1979;Reuter 1983Reuter , 1987Jennings 1984;Arlacchi 1986;Jankowski 1991;Dick 1995;Konrad and Skaperdas 1998;Garoupa 2000;Skaperdas 2001;Chang, Lu, and Chen 2005).…”
Section: Introductionmentioning
confidence: 99%
“…Fiorentini and Peltzman (1995) provide the best and most comprehensive collection of essays that consider the economics of criminal organization. In addition, a large literature discusses the economic impact of organized crime, activities of criminal organizations, optimal strategies for preventing organized crime, and reasons for its emergence (see also, e.g., Anderson 1979;Reuter 1983Reuter , 1987Jennings 1984;Arlacchi 1986;Jankowski 1991;Dick 1995;Konrad and Skaperdas 1998;Garoupa 2000;Skaperdas 2001;Chang, Lu, and Chen 2005).…”
Section: Introductionmentioning
confidence: 99%
“…The monopolistic model implies that, upon deciding to commit a crime, potential criminals have no other choice but to join the criminal organization. Chang et al (2005) find this perspective to be less than exhaustive in terms of describing criminal behavior. They argue that the determination of the market structure for crime should be endogenous, something which has notable implications for the optimal crime enforcement policies and crime itself.…”
Section: Crime Theoriesmentioning
confidence: 99%
“…To exhume the conventionally neglected facts and provide a more complete picture regarding organized crime, Chang et al (2005) developed a model in terms of a criminal decision framework in which individual crime and organized crime are coexisting alternatives to a potential offender. The model makes the size of a criminal organization a variable and explores interactive relationships between varying sizes of criminal organization, the crime rate, and the government's law enforcement strategies.…”
Section: Crime Theoriesmentioning
confidence: 99%
“…But in practice these ships often cruised the waters far from shore in search of other countries'merchant vessels carrying any goods they could use to justify seizing in alleged violation of the law that restricted trade with Spain's possessions in the Caribbean. 8 In 1726, for example, the merchants of London petitioned government o¢ cials imploring them to address the problem. "It has been a general practice, with the subjects of his Catholic Majesty in the West Indies," they wrote, "for several years past to …t out vessels in a warlike manner, on pretence of gaurding their coasts from unlawful traders: but, in reality under colour of such commissions have committed many depradations, and other acts of hostility, on your Majesty's subjects, on the high seas, and even on the coasts of Jamaica .…”
Section: Bringing In the Black Flagmentioning
confidence: 99%