Extortion
Extortion of productive enterprises ('shops') by organized crime groups ('gangs') takes place in virtually all economies. We develop a framework to study this activity. The main harm of extortion comes from the long-run erosion and distortion of useful production, as well as from...
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| Published in | Economica (London) Vol. 65; no. 260; pp. 461 - 477 |
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| Main Authors | , |
| Format | Journal Article |
| Language | English |
| Published |
Oxford, UK and Boston, USA
Blackwell Publishers Ltd
01.11.1998
The Suntory-Toyota International Centre for Economics and Related Disciplines T. Fisher Unwin Blackwell Publishing Ltd |
| Subjects | |
| Online Access | Get full text |
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| Abstract | Extortion of productive enterprises ('shops') by organized crime groups ('gangs') takes place in virtually all economies. We develop a framework to study this activity. The main harm of extortion comes from the long-run erosion and distortion of useful production, as well as from the destruction of property that we show can occur in equilibrium. Among other results, we also find: gangs may increase their activity in response to increased police protection; often, but not always, forward-looking gangs induce lower resource waste than myopic gangs. |
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| AbstractList | Extortion of productive enterprises (shops) by organized crime groups (gangs) takes place in virtually all economics. A framework to study this activity is developed. The main harm of extortion comes from the long-run erosion and distortion of useful production, as well as from the destruction of property that is shown can occur in equilibrium. Among other results, it is also found that gangs may increase their activity in response to increased police protection. Often, but not always, forward-looking gangs induce lower resource waste than myopic gangs. Extortion of productive enterprises ('shops') by organized crime groups ('gangs') takes place in virtually all economies. We develop a framework to study this activity. The main harm of extortion comes from the long-run erosion and distortion of useful production, as well as from the destruction of property that we show can occur in equilibrium. Among other results, we also find: gangs may increase their activity in response to increased police protection; often, but not always, forward-looking gangs induce lower resource waste than myopic gangs. |
| Author | Skaperdas, Stergios Konrad, Kai I. |
| Author_xml | – sequence: 1 givenname: Kai I. surname: Konrad fullname: Konrad, Kai I. organization: Free University of Berlin – sequence: 2 givenname: Stergios surname: Skaperdas fullname: Skaperdas, Stergios organization: University of California at Irvine |
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| Copyright | Copyright 1998 The London School of Economics and Political Science The London School of Economics and Political Science 1998 Copyright Blackwell Publishers Nov 1998 |
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| Snippet | Extortion of productive enterprises ('shops') by organized crime groups ('gangs') takes place in virtually all economies. We develop a framework to study this... Extortion of productive enterprises (‘shops’) by organized crime groups (‘gangs’) takes place in virtually all economies. We develop a framework to study this... Extortion of productive enterprises (shops) by organized crime groups (gangs) takes place in virtually all economics. A framework to study this activity is... |
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| SubjectTerms | Corruption Economic competition Economic models Equilibrium Extortion Gangs Logical givens Mathematical economics Organized crime Police Policing Political economy Shopkeepers Street gangs Studies |
| Title | Extortion |
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