The Economics of Organised Crime

This insightful exploration of organised crime uses economic theory to analyze its origins, internal structures, market behaviors, and effective deterrence policies in The Economics of Organised Crime.

In The Economics of Organised Crime, the author delves into the intricate dynamics of the organised crime sector through an economic lens. The book begins by exploring the origins of organised crime, examining how these criminal organisations emerge from states of anarchy. By employing the theory of rent-seeking, the author provides a framework for understanding how these entities establish themselves and operate within society. This foundational analysis sets the stage for a deeper investigation into the internal organisation of these groups and their market behaviour.

The book further analyses the dual nature of organised crime, portraying it as both a competitive firm and a monopolist in rule-making. This perspective allows for a nuanced examination of how these organisations interact with legal frameworks and governmental structures. The author applies modern industrial organisation theory to illustrate the internal rules and hierarchies that govern these criminal enterprises, shedding light on their operational strategies and decision-making processes.

Additionally, The Economics of Organised Crime addresses the critical issue of corruption that arises when organised crime and government collude. By applying a 'crime and economics' approach, the author highlights the detrimental effects of such partnerships on civil society. Each chapter concludes with normative results, guiding policymakers in designing more effective deterrence strategies against organised crime, making this book a significant contribution to both economic theory and practical policy formulation.