The classic paper on the economic approach to crime is Becker (1968). Useful summaries of the literature can be found in Polinsky and Shavell (2000) and Garoupa (1997). The analysis of fines and imprisonment in this chapter is based on the approach of Polinsky and Shavell (2000), whilst the analysis of markets for illegal activity draws on Becker, Murphy and Murphy (2006). Winter (2008) has a nontechnical coverage of a wide variety of issues that arise in the economic analysis of crime. Eide (1994) is a useful summary of the empirical literature, and Bowmaker (2005) is an entertaining and thorough survey of many economic applications of the economic approach to crime, including markets for illegal drugs, prostitution, pornography, suicide, legal and illegal gambling, and abortion. Grossman and Katz (1983) study the economics of plea bargaining, but in a different setting from the one considered in this chapter. The model of indirect tax evasion explored in this Chapter draws on Cremer and Gahvari (1993). Schelling (1967) is one of the first economic analyses of organised crime. Skaperdas (2001) is a more recent treatment. Gambetta (1993) is a book-length examination of the mafia. Fiorentini and Peltzman (1995) contains many interesting papers on the economics of organised crime.

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