Analysis of governance strategies reveals synergistic and crowding-out effects in crime chains, suggesting coordinated enforcement could improve social outcomes.
Abstract This study extends the traditional individual decision-making model by examining not only isolated criminal acts but also interrelated and joint offenses. It analyzes governance strategies and optimal enforcement intensity within criminal networks. By incorporating cross-externalities among crimes, the paper identifies a "synergistic effect" in related crimes and a "crowding-out effect" in related but non-overlapping offenses. The findings demonstrate that only a coordinated governance approach throughout the entire criminal chain can achieve optimal social outcomes. Additionally, the study reveals a substitution relationship among property, liberty, and capital punishments, and argues that penalties should be optimized based on a comprehensive evaluation of social costs and benefits.
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Huang et al. (2025) studied this question.
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