IDEAS home Printed from https://ideas.repec.org/a/kap/ejlwec/v48y2019i3d10.1007_s10657-019-09633-6.html
   My bibliography  Save this article

Law enforcement with criminal organizations and endogenous collaboration

Author

Listed:
  • Ken Yahagi

    (Waseda University)

Abstract

This paper proposes a simple framework consisting of a law enforcement model in which criminal organizations (Mafias) can collaborate with each other to control an illegal market. Within this framework, we investigate two different situations: (1) a single monopolistic criminal organization operation or (2) an organization collaborating with another criminal organization. Depending on the quality of the controlled illegal market, the welfare implications of these scenarios vary. This paper also investigates an incentive for criminal organizations to engage in endogenous cooperation. As a result, we explore how criminal organizations’ incentives coincide with social welfare implications.

Suggested Citation

  • Ken Yahagi, 2019. "Law enforcement with criminal organizations and endogenous collaboration," European Journal of Law and Economics, Springer, vol. 48(3), pages 351-363, December.
    • Handle: RePEc:kap:ejlwec:v:48:y:2019:i:3:d:10.1007_s10657-019-09633-6
    DOI: 10.1007/s10657-019-09633-6
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s10657-019-09633-6
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s10657-019-09633-6?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Gary S. Becker, 1974. "Crime and Punishment: An Economic Approach," NBER Chapters, in: Essays in the Economics of Crime and Punishment, pages 1-54, National Bureau of Economic Research, Inc.
    2. Abdala Mansour & Nicolas Marceau & Steeve Mongrain, 2006. "Gangs and Crime Deterrence," The Journal of Law, Economics, and Organization, Oxford University Press, vol. 22(2), pages 315-339, October.
    3. Poret, Sylvaine & Tejedo, Cyril, 2006. "Law enforcement and concentration in illicit drug markets," European Journal of Political Economy, Elsevier, vol. 22(1), pages 99-114, March.
    4. Nuno Garoupa & Jonathan Klick & Francesco Parisi, 2006. "A law and economics perspective on terrorism," Public Choice, Springer, vol. 128(1), pages 147-168, July.
    5. Oriana Bandiera, 2003. "Land Reform, the Market for Protection, and the Origins of the Sicilian Mafia: Theory and Evidence," The Journal of Law, Economics, and Organization, Oxford University Press, vol. 19(1), pages 218-244, April.
    6. Catino, Maurizio, 2015. "Mafia rules. The role of criminal codes in mafia organizations," Scandinavian Journal of Management, Elsevier, vol. 31(4), pages 536-548.
    7. Mariagiovanna Baccara & Heski Bar-Isaac, 2008. "How to Organize Crime -super-1," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 75(4), pages 1039-1067.
    8. Skarbek, David, 2012. "Prison gangs, norms, and organizations," Journal of Economic Behavior & Organization, Elsevier, vol. 82(1), pages 96-109.
    9. Peter T. Leeson & David B. Skarbek, 2010. "Criminal constitutions," Global Crime, Taylor & Francis Journals, vol. 11(3), pages 279-297, August.
    10. Garoupa, Nuno, 2000. "The Economics of Organized Crime and Optimal Law Enforcement," Economic Inquiry, Western Economic Association International, vol. 38(2), pages 278-288, April.
    11. Dimico, Arcangelo & Isopi, Alessia & Olsson, Ola, 2017. "Origins of the Sicilian Mafia: The Market for Lemons," The Journal of Economic History, Cambridge University Press, vol. 77(4), pages 1083-1115, December.
    12. Simon Rottenberg, 1973. "The Economics of Crime and Punishment," Books, American Enterprise Institute, number 920506, September.
    13. repec:bla:jecsur:v:11:y:1997:i:3:p:267-95 is not listed on IDEAS
    14. Federico Varese, 2011. "Mafia movements: a framework for understanding the mobility of mafia groups," Global Crime, Taylor & Francis Journals, vol. 12(3), pages 218-231, August.
    15. Peter T. Leeson, 2007. "An-arrgh-chy: The Law and Economics of Pirate Organization," Journal of Political Economy, University of Chicago Press, vol. 115(6), pages 1049-1094, December.
    16. Ken Yahagi, 2018. "Welfare effects of forming a criminal organization," European Journal of Law and Economics, Springer, vol. 46(3), pages 359-375, December.
    17. Giovanni Mastrobuoni, 2015. "The Value of Connections: Evidence from the Italian†American Mafia," Economic Journal, Royal Economic Society, vol. 125(586), pages 256-288, August.
    18. Peter T. Leeson & Douglas Bruce Rogers, 2012. "Organizing Crime," Supreme Court Economic Review, University of Chicago Press, vol. 20(1), pages 89-123.
    19. Naranjo, Alberto J., 2010. "Spillover effects of domestic law enforcement policies," International Review of Law and Economics, Elsevier, vol. 30(3), pages 265-275, September.
    20. Steven Shavell & A. Mitchell Polinsky, 2000. "The Economic Theory of Public Enforcement of Law," Journal of Economic Literature, American Economic Association, vol. 38(1), pages 45-76, March.
    21. Flores, Daniel, 2016. "Violence and law enforcement in markets for illegal goods," International Review of Law and Economics, Elsevier, vol. 48(C), pages 77-87.
    22. David Shirk & Joel Wallman, 2015. "Understanding Mexico’s Drug Violence," Journal of Conflict Resolution, Peace Science Society (International), vol. 59(8), pages 1348-1376, December.
    23. repec:wvu:wpaper:09-09 is not listed on IDEAS
    24. Nuno Garoupa, 1997. "The Theory of Optimal Law Enforcement," Journal of Economic Surveys, Wiley Blackwell, vol. 11(3), pages 267-295, September.
    25. Russell S. Sobel & Brian J. Osoba, 2009. "Youth Gangs as Pseudo-Governments Implications for Violent Crime," Southern Economic Journal, John Wiley & Sons, vol. 75(4), pages 996-1018, April.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Ken Yahagi & Susumu Cato, 2023. "Strategic crackdown on organized crime by local governments," Economics of Governance, Springer, vol. 24(2), pages 237-257, June.
    2. Ken Yahagi, 2022. "Regulation on coexisting legal and illegal markets with quality differentiation," European Journal of Law and Economics, Springer, vol. 53(2), pages 235-259, April.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Ken Yahagi, 2018. "Welfare effects of forming a criminal organization," European Journal of Law and Economics, Springer, vol. 46(3), pages 359-375, December.
    2. 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.
    3. David Skarbek & Peng Wang, 2015. "Criminal rituals," Global Crime, Taylor & Francis Journals, vol. 16(4), pages 288-305, October.
    4. Iain W. Long, 2017. "The Storm Before the Calm? Adverse Effects of Tackling Organized Crime," Manchester School, University of Manchester, vol. 85(5), pages 541-576, September.
    5. Ken Yahagi & Susumu Cato, 2023. "Strategic crackdown on organized crime by local governments," Economics of Governance, Springer, vol. 24(2), pages 237-257, June.
    6. Flores, Daniel, 2016. "Violence and law enforcement in markets for illegal goods," International Review of Law and Economics, Elsevier, vol. 48(C), pages 77-87.
    7. Peter T. Leeson & David B. Skarbek, 2010. "Criminal constitutions," Global Crime, Taylor & Francis Journals, vol. 11(3), pages 279-297, August.
    8. 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.
    9. Ennio E. Piano, 2017. "Free riders: the economics and organization of outlaw motorcycle gangs," Public Choice, Springer, vol. 171(3), pages 283-301, June.
    10. Ken Yahagi, 2022. "Regulation on coexisting legal and illegal markets with quality differentiation," European Journal of Law and Economics, Springer, vol. 53(2), pages 235-259, April.
    11. Poret, Sylvaine, 2009. "An optimal anti-drug law enforcement policy," International Review of Law and Economics, Elsevier, vol. 29(3), pages 221-228, September.
    12. Poret, Sylvaine & Tejedo, Cyril, 2006. "Law enforcement and concentration in illicit drug markets," European Journal of Political Economy, Elsevier, vol. 22(1), pages 99-114, March.
    13. Skarbek, David, 2012. "Prison gangs, norms, and organizations," Journal of Economic Behavior & Organization, Elsevier, vol. 82(1), pages 96-109.
    14. David Skarbek, 2024. "The political economy of criminal governance," Public Choice, Springer, vol. 200(1), pages 1-24, July.
    15. Leeson, Peter T., 2010. "Pirational choice: The economics of infamous pirate practices," Journal of Economic Behavior & Organization, Elsevier, vol. 76(3), pages 497-510, December.
    16. Skarbek, David, 2011. "Governance and Prison Gangs," American Political Science Review, Cambridge University Press, vol. 105(4), pages 702-716, November.
    17. Laetitia HAURET & Eric LANGLAIS & Carine SONNTAG, 2011. "On The Deterrent Effect Of Individual Versus Collective Liability In Criminal Organizations," Journal of Advanced Research in Law and Economics, ASERS Publishing, vol. 2(4), pages 125-135.
    18. James Kostelnik & David Skarbek, 2013. "The governance institutions of a drug trafficking organization," Public Choice, Springer, vol. 156(1), pages 95-103, July.
    19. Nicholas A. Curott & Alexander Fink, 2012. "Bandit Heroes: Social, Mythical, or Rational?," American Journal of Economics and Sociology, Wiley Blackwell, vol. 71(2), pages 470-497, April.
    20. 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.

    More about this item

    Keywords

    Criminal organization; Gang; Law enforcement; Monopolization; Cooperation;
    All these keywords.

    JEL classification:

    • K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:kap:ejlwec:v:48:y:2019:i:3:d:10.1007_s10657-019-09633-6. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.