The Economics of Organised Crime

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This book uses economic theory to analyze the different aspects of organized crime. The theory of rent-seeking is adopted to help understand the origin of criminal organizations, while modern industrial organization theory is used to explain the design of internal rules. The market behavior of organized crime is analyzed, the "crime and economics" approach being applied to the analysis of corruption that occurs when the organized crime sector and the government collude to exploit their monopoly on rule-making. Each chapter outlines the normative results of the analysis in order to design more sophisticated deterrence policies.

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Editorial Reviews

From the Publisher
"The book begins with an excellent introduction....the book is a good source for references on organized crime and related area. Overall it is worth reading and many of the ideas merit further thought and inquiry." William P. Jennings, Journal of Economic Literature
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Product Details

  • ISBN-13: 9780521629553
  • Publisher: Cambridge University Press
  • Publication date: 12/28/2004
  • Edition description: New Edition
  • Pages: 301
  • Product dimensions: 5.98 (w) x 8.98 (h) x 0.71 (d)

Table of Contents

Foreword; 1. Introduction Gianluca Fiorentini and Sam Peltzman; Part I. Theories of the State and the Origin of Criminal Organisations: 2. Organised crime, Mafia and governments Annelise Anderson; Discussion Maurizio Franzini; 3. Gangs as primitive states Stergios Skaperdas, and Constantinos Syropoulos; Discussion William J. Baumol; Part II. The Criminal Organisation as a Firm: 4. Internal cohesion and competition among criminal organisations Michele Polo; Discussion Pier Luigi Sacco; 5. Conspiracy among the many: the Mafia in legitimate industries Diego Gambetta and Peter Reuter; Discussion Luigi Campiglio; Part III. Organised Crime and State Intervention in the Economy: 6. Rival kleptocrats: the Mafia versus the state Herschel I. Grossman; Discussion Marco Celentani; 7. Corruption: arm's-length relationships and markets Vito Tanzi; Discussion Flavio Delbono; Part IV. Deterrence Policies Against Legal Firms Involved in Illegal Activities: 8. Auditing with 'ghosts' Frank A. Cowell and James P. F. Gordon; Discussion Domenico Siniscalco; 9. The reputational penalty firms bear from committing criminal fraud Jonathan M. Karpoff and John R. Lott Jr.; Discussion Michele Polo; Part V. Deterrence Policies Against Organised Crime: 10. Regulating the organised crime sector Marco Celentani, Massimo Morelli and Riccardo Martina; Discussion Carlo Scarpa; 11. Oligopolistic competition in illegal markets Gianluca Fiorentini; Discussion Sam Peltzman; Index.

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