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Mafia Economics: How Southern California Became an Economic Syndicate

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  • Branch, N. Robert

Abstract

Mafia Economics: How Southern California Became an Economic Syndicate examines how regulation, networks, and compliance costs have transformed the region’s markets from open arenas of competition into controlled ecosystems. Drawing on case studies across housing, business, and creative industries, this report identifies the mechanisms, legal, procedural, and social, that selectively grant access and advantage incumbents. By framing these dynamics as a “syndicate economy,” the work highlights the erosion of classical liberal principles and proposes targeted reforms to restore openness, transparency, and opportunity. This analysis positions Southern California not as a failure of markets, but as a cautionary tale of how oversight, when combined with entrenched networks, can quietly become a gatekeeper.

Suggested Citation

  • Branch, N. Robert, 2026. "Mafia Economics: How Southern California Became an Economic Syndicate," MPRA Paper 128603, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:128603
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    References listed on IDEAS

    as
    1. George J. Stigler, 1971. "The Theory of Economic Regulation," Bell Journal of Economics, The RAND Corporation, vol. 2(1), pages 3-21, Spring.
    2. Simeon Djankov & Rafael La Porta & Florencio Lopez-de-Silanes & Andrei Shleifer, 2002. "The Regulation of Entry," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 117(1), pages 1-37.
    3. Edward L. Glaeser & Joseph Gyourko & Raven E. Saks, 2006. "Urban growth and housing supply," Journal of Economic Geography, Oxford University Press, vol. 6(1), pages 71-89, January.
    4. Klapper, Leora & Laeven, Luc & Rajan, Raghuram, 2006. "Entry regulation as a barrier to entrepreneurship," Journal of Financial Economics, Elsevier, vol. 82(3), pages 591-629, December.
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    JEL classification:

    • L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation

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