Organizing Crime

Organizing Crime* Peter T. Leeson† Douglas Bruce Rogers‡ Abstract This paper investigates the industrial boldness of brutal enterprise. We argue that differences in contestability across immoral industries crucially contour line how producers in these industries organize. In more contestable barbarous industries, producers pulmonary tuberculosis organizational hierarchy to utilize collusion and preserve their returns. However, hierarchy creates scope for boss self-dealing and so is speak toly. In less contestable criminal industries, where producers benefit from colluding is smaller, this cost exceeds organizational hierarchys benefit. Here producers organize categorically instead. To examine our hypothesis we explore historys almost infamous criminal organizations: the Sicilian Mafia and Caribbean pirates. We thank Kenneth Binmore, Pete Boettke, Chris Coyne, seminar participants at Emory University, and especially Jesse Shapiro for helpful comments and sugge stions on an earlier draft of this paper. Leeson thank the Becker concern on wampum Price Theory at the University of Chicago, where this research was partly conducted, and the Mercatus Center at George mason University. † electronic mail: pleeson@gmu.edu. Address: part of Economics, George Mason University, MSN 3G4, Fairfax, VA 22030. ‡ Email: drogersa@gmu.edu.

Address: Department of Economics, George Mason University, MSN 3G4, Fairfax, VA 22030. * 1 1 Introduction Criminal organizations translate significant variation in their organizational forms. Some, such as the Sicilian Mafia, are or ganized on the basis of a pronounced hierarc! hy (Arlacchi 1992: 21, 33, 34; Gambetta 1993: 68; Reuter 1983: 156). Hierarchical criminal organizations involve at least two levels of power and decision-making domiciliate: (1) a higher level consisting of individuals who make autonomous decisions and numeral violence to regulate the behavior of individuals who occupy a chagrin level, and (2) a lower level consisting of individuals whose behaviors...If you want to get a full essay, order it on our website: OrderCustomPaper.com

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