The Economics of Stigma: Why More Detection of Crime May Result in Less Stigmatization

This paper establishes that there may be an inverse relation between the rate of detection and the deterrent effects of stigma. The more people are detected and stigmatized, the less deterrence there may be. This conclusion is based on a search model in which the costs of searching for law‐abiding partners increase with the rate of detection. The model distinguishes between willing stigmatizers, who refrain from business or social contacts with...