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Defending organized crime? A note

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  • Backhaus, Jürgen G.

Abstract

The objective of this note.is to discuss optimal enforcement strategies vis-a-vis organized and unorganized crime. Taking an earlier contribution by Buchanan as a starting point of the analysis, it is argued that his proposal to monopolize crime in order to reduce the general level of criminal activity is a questionable strategy to curb crime. Syndicated crime is likely to benefit from economies of scale in the provision of non-governmental enforcement of agreements and contracts. The consequent reduction in costs is likely to increase the general level of criminal activity. Nevertheless, the price-theoretic argument is seen as an interesting starting point for the design of new strategies to combat crime.

Suggested Citation

  • Backhaus, Jürgen G., 1979. "Defending organized crime? A note," Discussion Papers, Series I 120, University of Konstanz, Department of Economics.
    • Handle: RePEc:zbw:kondp1:120
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    Cited by:

    1. Antonio Acconcia & Giovanni Immordino & Salvatore Piccolo & Patrick Rey, 2014. "Accomplice Witnesses and Organized Crime: Theory and Evidence from Italy," Scandinavian Journal of Economics, Wiley Blackwell, vol. 116(4), pages 1116-1159, October.
    2. Salvatore Piccolo & Giovanni Immordino, 2012. "Optimal Accomplice-Witnesses Regulation under Asymmetric Information," CSEF Working Papers 304, Centre for Studies in Economics and Finance (CSEF), University of Naples, Italy.
    3. Dick, Andrew R., 1995. "When does organized crime pay? A transaction cost analysis," International Review of Law and Economics, Elsevier, vol. 15(1), pages 25-45, January.
    4. Golz, Michael & D'Amico, Daniel J., 2018. "Market concentration in the international drug trade," Journal of Economic Behavior & Organization, Elsevier, vol. 150(C), pages 28-42.
    5. Antony W. Dnes & Nuno Garoupa, 2010. "Behavior, Human Capital and the Formation of Gangs," Kyklos, Wiley Blackwell, vol. 63(4), pages 517-529, November.
    6. Norgaard, Julia R. & Walbert, Harold J. & Hardy, R. August, 2018. "Shadow markets and hierarchies: comparing and modeling networks in the Dark Net," Journal of Institutional Economics, Cambridge University Press, vol. 14(5), pages 877-899, October.
    7. Garoupa, Nuno, 2007. "Optimal law enforcement and criminal organization," Journal of Economic Behavior & Organization, Elsevier, vol. 63(3), pages 461-474, July.
    8. Giovanni Bernardo & Irene Brunetti & Mehmet Pinar & Thanasis Stengos, 2021. "Measuring the presence of organized crime across Italian provinces: a sensitivity analysis," European Journal of Law and Economics, Springer, vol. 51(1), pages 31-95, February.
    9. Aquilante, Tommaso & Maretto, Guido, 2016. "Cooperation in Criminal Markets," MPRA Paper 75949, University Library of Munich, Germany.

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