This paper demonstrates that increasing the expected sanctions for a crime may increase this crime's prevalence, using a principal-agent model with different crimes. The intuition is that the policy change may increase the principal's expected payoff from crime by decreasing the information rent...

This book deals with the inner life of the capitalist firm. There we find numerous conflicts, the most important of which concerns the individual employment relationship which is understood as a principal-agent problem between the manager, the principal, who issues orders that are to be followed...

This paper demonstrates that increasing the expected sanction for a crime may increase this crime's prevalence, using a principal–agent model with different kinds of crime that is typical of organized crime. The intuition for the finding is that the policy change may increase the principal's...