Regulators typically treat frequent violators more harshly. When does such harsh treatment maximize overall compliance?

We explore enforcement spillovers - when sanctions at one entity influence behavior at other entities. Our model illustrates when spillovers arise from a regulatory channel and when they arise from a channel not previously emphasized: product markets.

Bevin Etienne is assistant professor of commerce and public policy at the Frank Batten School of Leadership and Public Policy at the University of Virginia. Etienne has extensive teaching and course development experience in the areas of sustainability, entrepreneurship, energy, and engineering design. He emphasizes the importance of capacity building in promoting sustainability and social entrepreneurship in developing countries as well as the role of open source in innovation and entrepreneurship.  

Molly Lipscomb is an associate professor of public policy and economics at the Batten School and the Director of the Center for Social Innovation at the University of Virginia.  Lipscomb’s research focuses primarily on environmental issues in developing countries and adaptation to lack of centralized health and sanitation services. 

Jay Shimshack is a professor of public policy and economics at the Frank Batten School of Leadership and Public Policy. Shimshack's research focuses on environmental regulation, environmental economics, corporate social behavior, and applied microeconomics for public policy. 

William Shobe is research professor of public policy at the Batten School and the Director of the Center for Economic and Policy Studies at UVA’s Weldon Cooper Center for Public Service. Shobe's current research includes emission market and auction design, environmental federalism, improved economic modeling of Virginia’s economy, state economic development incentives and state economic forecasting.