Optimal Law Enforcement with Self-Reporting of Behavior / Louis Kaplow, Steven Shavell.
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Item type | Home library | Collection | Call number | Status | Date due | Barcode | Item holds | |
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Working Paper | Biblioteca Digital | Colección NBER | nber w3822 (Browse shelf(Opens below)) | Not For Loan |
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August 1991.
Self-reporting -- the reporting by parties of their own behavior to an enforcement authority -- is a commonly observed aspect of law enforcement, as in the context of environmental and safety regulation. We add self-reporting to the model of the control of harmful externalities through probabilistic law enforcement. Optimal self-reporting schemes are characterized and are shown to offer two advantages over schemes without self-reporting: enforcement resources are saved because individuals who are led to report harmful acts need not be identified; risk is reduced because individuals bear certain sanctions when they report their behavior, rather than face uncertain sanctions.
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