1\ I was watching the "Sneaky Pete" series (about a family of bail bondsmen) and realized I knew nothing about the economics of bounty hunting.
What I learned surprised me
It's a classic example of even a barbaric free market outperforming a regulated or state-run market
What I learned surprised me
It's a classic example of even a barbaric free market outperforming a regulated or state-run market
2\ The first shocker: around a quarter of arrestees skip bail. So there is an enormous need for people to track down wary and often dangerous criminals.
The first option you already know: let a highly trained monopoly of government employees do the work
The first option you already know: let a highly trained monopoly of government employees do the work
3\ If Google is to be believed, about 10% of skips are collared by police, often incidentally as part of traffic stops.
So the police, infamous for brutality, protected from prosecution, highly paid, and benefiting from massive resources, are terrible at catching skips
So the police, infamous for brutality, protected from prosecution, highly paid, and benefiting from massive resources, are terrible at catching skips
4\ Now the second shocker: bounty hunters are mostly unregulated and have NO legal protection. If they shoot the wrong guy, no police union defends them.
They also generally are not required to have training. They don't need warrants, they don't give Miranda warnings.
They also generally are not required to have training. They don't need warrants, they don't give Miranda warnings.
5\ On popular theories of regulation, we have a disaster on our hands: bounty hunters must be terrible at their jobs (certification requirements are rare), and they must brutalize the citizenry (no Miranda or warrant obligations)
And yet...
And yet...
6\ Bounty hunters have around a 90% success rate!
Let that sink in. They are not protected by police unions, they are poorly paid, are generally unlicensed, and have small resources.
And yet they massively outperform the police.
Let that sink in. They are not protected by police unions, they are poorly paid, are generally unlicensed, and have small resources.
And yet they massively outperform the police.
7\ "Aha" I can hear you saying, "but without Miranda warnings, warrants, and training, bounty hunters must run roughshod over civil rights."
But apparently not. These guys collar 9 skips for every 1 skip the cops collar, yet they almost never make the news!
But apparently not. These guys collar 9 skips for every 1 skip the cops collar, yet they almost never make the news!
8\ A moment's reflection suggests why: bounty hunting is a market, and like all markets, suppliers only succeed by serving their customers.
A bail bondsman wants repeat customers from the ghetto, and if he is known for kicking down the wrong doors, he will lose business.
A bail bondsman wants repeat customers from the ghetto, and if he is known for kicking down the wrong doors, he will lose business.
9\ By comparison, a government monopoly on policing is not a market. There is no price mechanism. If a cop treats you roughly, there is nowhere else to take your business
Bounty hunting may be crude and distasteful, but it works better than the alternative, which is gov monopoly
Bounty hunting may be crude and distasteful, but it works better than the alternative, which is gov monopoly
10\ Footnote: Bounty hunting is a unique common law tradition, a holdover in the US and Philippines and nowhere else.
Two hundred years ago, all prosecution in the UK was private (police didn't exist), and the US inherited that tradition (which the UK subsequently lost).
Two hundred years ago, all prosecution in the UK was private (police didn't exist), and the US inherited that tradition (which the UK subsequently lost).
@ATabarrok (Bail bonds thread)
