Private Protection Against Crime When Property Value is Private Information
21 Pages Posted: 22 Aug 2012
Date Written: July 31, 2012
This paper analyzes private precautions against crime when the value of the property to be protected is private information. Within a framework in which potential criminals can choose between various crime opportunities, we establish that decentralized decision-making by potential victims may lead to suboptimal levels of investment in private protection. Specifically, suboptimal investment can occur when observable precautions communicate information about property value to potential offenders, even when the diversion effect of private safety measures is taken into account.
JEL Classification: D620, K420
Suggested Citation: Suggested Citation