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Cohen, Mark A. --- "Cyber Crime" [2009] ELECD 467; in Garoupa, Nuno (ed), "Criminal Law and Economics" (Edward Elgar Publishing, 2009)

Book Title: Criminal Law and Economics

Editor(s): Garoupa, Nuno

Publisher: Edward Elgar Publishing

ISBN (hard cover): 9781847202758

Section: Chapter 14

Section Title: Cyber Crime

Author(s): Cohen, Mark A.

Number of pages: 29

Extract:

14 Cyber crime
Mark A. Cohen*


1. Introduction
The purpose of this chapter is to examine the economic theory and empiri-
cal evidence on crime and punishment for economic crimes (for example,
fraud and tax evasion) and new technology offenses (for example, com-
puter hacking and viruses), with reference to the role of the United States
Sentencing Commission (`Commission') in affecting individual behavior.1
This chapter relies upon the economic theory of individual behavior
known as the rational actor paradigm. Under this theory, it is assumed
that white-collar criminals are no different from most law-abiding citizens.
They are rational decision makers acting in what they perceive to be their
own best interest.2 Although one might question whether offenders who
engage in crimes of passion are rational, there should be little controversy
in this view of offenders who commit economic crimes such as fraud and
tax evasion. As rational decision makers, white-collar criminals base their
decision to commit an economic crime upon their subjective evaluation of
the expected costs and benefits of committing the crime. Even if actions
appear irrational, they may be based on the offender's perception of risk
and opportunities. Of course, potential white-collar criminals are not the
only decision makers that affect the crime rate. Others who play a role are



* Professor of Management and Law, Vanderbilt University and Vice President
for Research, Resources for the Future.
1
This chapter is based largely on a paper entitled, `Economic Theories of Crime
Control: ...