A convicted criminal suffers not only from public penalties but from s
tigma, the reluctance of others to interact with him economically and
socially. Conviction can convey useful information about the convicted
, which makes stigmatization an important and legitimate function of t
he criminal justice system quite apart from moral considerations. The
magnitude of stigma depends on expectations and the crime rate, howeve
r, which can lead to multiple, Pareto-ranked equilibria with different
amounts of crime.