Department of Economics and Business - Universitat Pompeu Fabra

Title:: Optimal law enforcement and criminal organization
Author:: Nuno Garoupa
Date:: March 1999
Abstract:: In this paper, we take an organizational view of organized crime. In particular, we study the organizational consequences of product illegality attending at the following characteristics: (i) contracts are not enforceable in court, (ii) all participants are subject to the risk of being punished, (iii) employees present a major threat to the entrepreneur having the most detailed knowledge concerning participation, (iv) separation between ownership and management is difficult because record-keeping and auditing augments criminal evidence.
Keywords:: Organized crime, punishment, plea-bargaining
JEL codes:: K4
Area of Research:: Business Economics and Industrial Organization

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