Economic model of crime suggests that crime is driven by rational self-interest. Thus, any penalties incurred for crimes such as insider trading must exceed the potential economic gains for the subject. This is based upon a rational concept of cost-benefit analysis on the part of the defendant. Crime must be ensured not to 'pay' because of the penalties extracted by the legal system. The theory was first advanced by Gary Becker in a seminal 1968 paper. "Becker's paper, 'Crime and Punishment: An Economic Approach,' looks at criminals as rational individuals, just like anyone else. Criminals, like ordinary citizens, seek to maximize their own well-being, but through illegal instead of legal means" (Bahrani 2012). Just like you and I seek out the most advantageous jobs and the best prices to maximize our utility, so do criminals.

Regarding criminal cases, the economic model suggests that criminals will weigh the potential negatives against...
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