Organizing Crime

Organizing Crime* Peter T. Leeson† Douglas Bruce Rogers‡ Abstract This paper investigates the industrial institution of brutal enterprise. We argue that differences in contestability across immoral industries crucially contour line how producers in these industries organize. In more contestable immoral industries, producers pulmonary tuberculosis organizational hierarchy to obligate collusion and preserve their returns. However, hierarchy creates scope for boss self-dealing and so is embodyly. In less contestable criminal industries, where producers benefit from colluding is smaller, this cost exceeds organizational hierarchys benefit. Here producers organize flatly instead. To examine our hypothesis we explore historys nearly 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 suggestions on an earlier draft of this paper. Leeson give thanks 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. † email: pleeson@gmu.edu. Address: segment 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 render significant variation in their organizational forms. Some, such as the Sicilian Mafia, are organized on the basi s of a pronounced hierarchy (Arlacchi 1992: ! 21, 33, 34; Gambetta 1993: 68; Reuter 1983: 156). Hierarchical criminal organizations involve at least two levels of power and decision-making erect: (1) a higher level consisting of individuals who make autonomous decisions and moment violence to regulate the behavior of individuals who occupy a lower 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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