Ragan Petrie is an Associate Professor in the Department of Economics and a Faculty Member in the Interdisciplinary Center for Economic Science (ICES) both at George Mason University. She got her PhD in Economics and Agricultural Economics at University of Wisconsin-Madison and has been working in the field of experimental economics for over 10 years. Her publications are on topics such as development, bargaining, public goods, gender and beauty.

Abstract: For long-distance trade to efficiently take place, the costs of safely delivering goods must not exceed the benefits. Crime in the mail sector can then hamper the development of trade. We use a field experiment to detect crime in this sector and measure its differential impacts. We subtly, and realistically, manipulate the content and information available in mail sent to households and detect high levels of shirking and stealing. Eighteen percent of the mail never arrived at its destination, and even more was lost if there was a slight hint of something additional inside the envelope.Our study demonstrates the importance of transaction costs created by crime and that not everyone in the population is equally affected. Crime is strategic and depends on the expectations of being caught.