IDEAS home Printed from https://ideas.repec.org/a/ucp/scerev/doi10.1086-668520.html
   My bibliography  Save this article

Organizing Crime

Author

Listed:
  • Peter T. Leeson
  • Douglas Bruce Rogers

Abstract

This paper investigates the industrial organization of criminal enterprise. We argue that differences in contestability across criminal industries crucially shape how producers in those industries or ganize. In more contestable criminal industries, producers use organizational hierarchy to enforce collusion and preserve their returns. However, hierarchy creates scope for boss self-dealing and so is costly. In less contestable criminal industries, where producers' benefit from colluding is smaller, this cost exceeds organizational hierarchy's benefit. Here producers organize “flatly” instead. To examine our hypothesis we explore history's most infamous criminal organizations: the Sicilian Mafia and Caribbean pirates.

Suggested Citation

  • Peter T. Leeson & Douglas Bruce Rogers, 2012. "Organizing Crime," Supreme Court Economic Review, University of Chicago Press, vol. 20(1), pages 89-123.
  • Handle: RePEc:ucp:scerev:doi:10.1086/668520
    DOI: 10.1086/668520
    as

    Download full text from publisher

    File URL: http://dx.doi.org/10.1086/668520
    Download Restriction: Access to the online full text or PDF requires a subscription.

    File URL: http://dx.doi.org/10.1086/668520
    Download Restriction: Access to the online full text or PDF requires a subscription.

    File URL: https://libkey.io/10.1086/668520?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. Shleifer, Andrei & Vishny, Robert W, 1997. "A Survey of Corporate Governance," Journal of Finance, American Finance Association, vol. 52(2), pages 737-783, June.
    2. Jensen, Michael C. & Meckling, William H., 1976. "Theory of the firm: Managerial behavior, agency costs and ownership structure," Journal of Financial Economics, Elsevier, vol. 3(4), pages 305-360, October.
    3. 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.
    4. Alastair Smith & Federico Varese, 2001. "Payment, Protection And Punishment," Rationality and Society, , vol. 13(3), pages 349-393, August.
    5. Neher, Philip A, 1978. "The Pure Theory of the Muggery," American Economic Review, American Economic Association, vol. 68(3), pages 437-445, June.
    6. Olson, Mancur, 1993. "Dictatorship, Democracy, and Development," American Political Science Review, Cambridge University Press, vol. 87(3), pages 567-576, September.
    7. 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.
    8. Leeson, Peter T. & Nowrasteh, Alex, 2011. "Was privateering plunder efficient?," Journal of Economic Behavior & Organization, Elsevier, vol. 79(3), pages 303-317, August.
    9. Peter Leeson, 2009. "The calculus of piratical consent: the myth of the myth of social contract," Public Choice, Springer, vol. 139(3), pages 443-459, June.
    10. 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.
    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. S. Brock Blomberg & Ricardo Fernholz & John-Clark Levin, 2013. "Symposium - Terrorism and the Invisible Hook," Southern Economic Journal, Southern Economic Association, vol. 79(4), pages 849-863, April.
    2. 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.
    3. David Skarbek & Peng Wang, 2015. "Criminal rituals," Global Crime, Taylor & Francis Journals, vol. 16(4), pages 288-305, October.
    4. S. Brock Blomberg & Ricardo Fernholz & John-Clark Levin, 2013. "Symposium - Terrorism and the Invisible Hook," Southern Economic Journal, John Wiley & Sons, vol. 79(4), pages 849-863, April.
    5. Armando Razo, 2021. "Network structure and performance of crony capitalism systems credible commitments without democratic institutions," Public Choice, Springer, vol. 189(1), pages 115-137, October.
    6. Ennio E. Piano, 2017. "Free riders: the economics and organization of outlaw motorcycle gangs," Public Choice, Springer, vol. 171(3), pages 283-301, June.
    7. James Kostelnik & David Skarbek, 2013. "The governance institutions of a drug trafficking organization," Public Choice, Springer, vol. 156(1), pages 95-103, July.
    8. Escalante, Edwar E., 2020. "Night watchers and terrorists," Journal of Economic Behavior & Organization, Elsevier, vol. 171(C), pages 116-131.
    9. Peter T. Leeson & David B. Skarbek, 2010. "Criminal constitutions," Global Crime, Taylor & Francis Journals, vol. 11(3), pages 279-297, August.
    10. Harris,Colin & Cai,Meina & Murtazashvili,Ilia & Murtazashvili,Jennifer Brick, 2020. "The Origins and Consequences of Property Rights," Cambridge Books, Cambridge University Press, number 9781108969055, January.
    11. 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.
    12. 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.

    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. David Skarbek, 2024. "The political economy of criminal governance," Public Choice, Springer, vol. 200(1), pages 1-24, July.
    2. David Skarbek & Peng Wang, 2015. "Criminal rituals," Global Crime, Taylor & Francis Journals, vol. 16(4), pages 288-305, October.
    3. James Kostelnik & David Skarbek, 2013. "The governance institutions of a drug trafficking organization," Public Choice, Springer, vol. 156(1), pages 95-103, July.
    4. 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.
    5. Peter Leeson, 2014. "Pirates, prisoners, and preliterates: anarchic context and the private enforcement of law," European Journal of Law and Economics, Springer, vol. 37(3), pages 365-379, June.
    6. Ennio E. Piano, 2018. "Outlaw and economics: Biker gangs and club goods," Rationality and Society, , vol. 30(3), pages 350-376, August.
    7. Andrew Young, 2015. "From Caesar to Tacitus: changes in early Germanic governance circa 50 BC-50 AD," Public Choice, Springer, vol. 164(3), pages 357-378, September.
    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. Freire, Danilo, 2017. "Prison Gangs," SocArXiv kuqqx, Center for Open Science.
    11. Leeson, Peter T. & Boettke, Peter J. & Lemke, Jayme S., 2014. "Wife Sales," Review of Behavioral Economics, now publishers, vol. 1(4), pages 349-379, December.
    12. Harris,Colin & Cai,Meina & Murtazashvili,Ilia & Murtazashvili,Jennifer Brick, 2020. "The Origins and Consequences of Property Rights," Cambridge Books, Cambridge University Press, number 9781108969055, January.
    13. Ken Yahagi, 2018. "Welfare effects of forming a criminal organization," European Journal of Law and Economics, Springer, vol. 46(3), pages 359-375, December.
    14. 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.
    15. Carl Mildenberger, 2015. "Virtual world order: the economics and organizations of virtual pirates," Public Choice, Springer, vol. 164(3), pages 401-421, September.
    16. Leeson,Peter T., 2014. "Anarchy Unbound," Cambridge Books, Cambridge University Press, number 9781107025806, January.
    17. 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.
    18. Skarbek, David, 2011. "Governance and Prison Gangs," American Political Science Review, Cambridge University Press, vol. 105(4), pages 702-716, November.
    19. Skarbek, David, 2020. "Qualitative research methods for institutional analysis," Journal of Institutional Economics, Cambridge University Press, vol. 16(4), pages 409-422, August.
    20. Guha, Brishti, 2012. "Pirates and fishermen: Is less patrolling always bad?," Journal of Economic Behavior & Organization, Elsevier, vol. 81(1), pages 29-38.

    More about this item

    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:ucp:scerev:doi:10.1086/668520. 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: Journals Division (email available below). General contact details of provider: https://www.journals.uchicago.edu/SCER .

    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.