Becker, G. and G. Stigler (1974), Law Enforcement, Malfeasance, and the Compensation of Enforcers
Jump to navigation
Jump to search
Return to BPP Field Exam Papers 2012
| Article | |
|---|---|
| Has bibtex key | |
| Has article title | Law Enforcement, Malfeasance, and the Compensation of Enforcers |
| Has author | Becker, G. and G. Stigler |
| Has year | 1974 |
| In journal | |
| In volume | |
| In number | |
| Has pages | |
| Has publisher | |
| © edegan.com, 2016 | |
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]
