Citation

Marceau N. Int. Rev. Law Econ. 1997; 17(2): 193-201.

Copyright

(Copyright © 1997, Elsevier Publishing)

DOI

10.1016/S0144-8188(97)00008-2

PMID

unavailable

Abstract

When an individual participates in the market for crime, there is a chance he will encounter violence. Hence, only the individuals who have a high tolerance for violence will participate in this market. If the level of violence is itself determined by the degree of tolerance of those who are active in the market, multiple equilibria can exist. Indeed, it is possible that the economy settles down in a high-violence equilibrium, although a low-violence equilibrium is possible. Violence-reducing policies like gun control are likely to have the desired effect, but this is not guaranteed.