Edit Article: Becker, G. and G. Stigler (1974), Law Enforcement, Malfeasance, and the Compensation of Enforcers

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Return to [[BPP Field Exam Papers 2012]] ===Compensation of Enforcers=== B&S propose two methods: #Paying higher wages and monitoring performance to make honest behavior attractive enough. #Making enforcers 'partners' of Victims in claiming compensation Focus on method 1 -- Solve using backward induction. See paper for solution for <math>W_{1}^{*}</math> and <math>W_{2}^{*}</math>

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Edit Article: Becker, G. and G. Stigler (1974), Law Enforcement, Malfeasance, and the Compensation of Enforcers

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