Citation

Garoupa N. Int. Rev. Law Econ. 1997; 17(3): 423-429.

Copyright

(Copyright © 1997, Elsevier Publishing)

DOI

10.1016/S0144-8188(97)00017-3

PMID

unavailable

Abstract

It is a common belief that private law enforcement leads to more nonoffenders being charged as a consequence of profit maximization. In this note we argue that monopolistic enforcement leads in many circumstances to underdetection and less accuracy. The use of a monetary sanction (subsidy) to penalize (compensate) the monopolistic enforcement agency when a charged individual is set free solves the problem.