This paper presents a model explaining the spatial concentration of cr
ime. The model features two neighborhoods identical in preferences, ab
ilities, and environment. We find, however, that in equilibrium crime
concentrates in one neighborhood. In a dynamic version of the model we
also show that initial conditions may determine the steady-state crim
e rate. The key assumption is that a criminal's chance of capture is a
decreasing function of the number of other criminals Operating in the
area. (C) 1996 Academic Press, Inc.