The Law and Economics literature on public law enforcement has generally treated separately the issue of marginal deterrence from that of punishing repeated offenders though escalating penalties. We extend the model provided by Emons (2003) to show how pursuing both policies may generate an...

In this paper we compare - in the laboratory - stoppage and virtual strike. Our experiment confirms that higher wages offered by an employer lead to considerably more costly effort provision. The number of strikes, the level of efforts and average total payoffs are higher under virtual strike...