We propose a deterrence mechanism that utilizes insider information contained in criminal networks. Under this mechanism, a suspect, identified by the regulator, can nominate a connected person from the network for the crime, and only the more severe offender is penalized. We show theoretically...

We propose a deterrence mechanism that utilizes insider information criminals collect through customary practices. Under this mechanism, a suspect caught committing a criminal act can nominate a person who has committed a similar crime, and only the more severe offender is penalized. Nash...