Forbidden Transactions and Black Markets

Author:

Gu Chenlin1,Roth Alvin2ORCID,Wu Qingyun23ORCID

Affiliation:

1. Département de Mathématiques et applications, Ecole Normale Supérieure, Paris Sciences et Lettres Research University, Paris 75230, France;

2. Department of Economics, Stanford University, Stanford, California 94305;

3. JQ Investments, Shanghai 200000, China

Abstract

Repugnant transactions are sometimes banned, but legal bans sometimes give rise to active black markets that are difficult if not impossible to extinguish. We explore a model in which the probability of extinguishing a black market depends on the extent to which its transactions are regarded as repugnant as measured by the proportion of the population that disapproves of them and the intensity of that repugnance as measured by willingness to punish. Sufficiently repugnant markets can be extinguished with even mild punishments, whereas others are insufficiently repugnant for this and become exponentially more difficult to extinguish the larger they become and the longer they survive.

Publisher

Institute for Operations Research and the Management Sciences (INFORMS)

Subject

Management Science and Operations Research,Computer Science Applications,General Mathematics

Cited by 1 articles. 订阅此论文施引文献 订阅此论文施引文献,注册后可以免费订阅5篇论文的施引文献,订阅后可以查看论文全部施引文献

同舟云学术

1.学者识别学者识别

2.学术分析学术分析

3.人才评估人才评估

"同舟云学术"是以全球学者为主线,采集、加工和组织学术论文而形成的新型学术文献查询和分析系统,可以对全球学者进行文献检索和人才价值评估。用户可以通过关注某些学科领域的顶尖人物而持续追踪该领域的学科进展和研究前沿。经过近期的数据扩容,当前同舟云学术共收录了国内外主流学术期刊6万余种,收集的期刊论文及会议论文总量共计约1.5亿篇,并以每天添加12000余篇中外论文的速度递增。我们也可以为用户提供个性化、定制化的学者数据。欢迎来电咨询!咨询电话:010-8811{复制后删除}0370

www.globalauthorid.com

TOP

Copyright © 2019-2024 北京同舟云网络信息技术有限公司
京公网安备11010802033243号  京ICP备18003416号-3