The Economics of Organized Crime

This is the first book to use economic theory in the analysis of the different aspects of organized crime: origins, internal organization, market behaviour and deterrence policies. The theory of rent-seeking is adopted to help understand the origin of criminal organizations from a state of anarchy, while modern industrial organization theory is used to explain the design of internal rules in the organized crime sector. The market behaviour of organized crime is analysed taking into account its double nature of competitive firm and of monopolist on rule-making. This book provides a careful balance between theoretical and institutional or empirical contributions. Each chapter outlines the normative results of the analysis in order to design more sophisticated deterrence policies.