An Economic Analysis of the Mafia
• Author(s): David Maddison & Marilena Pollicino
• Published: June 2003
• Pages in paper: 16
Abstract
This paper reviews the current economic thinking on the Mafia phenomenon. It
distinguishes the Mafia from ordinary criminal gangs by the desire of the former
for the exclusive right to commit criminal acts. The existence of the Mafia in
particular locations at particular times is explained by the abdication of power or
by the state’s unwitting creation of illegal markets. The Mafia’s involvement in
the supply of illicit goods is due to its ability to prey on common criminals, while
its involvement in the supply of legal goods is in order to police anti-competitive
agreements amongst businessmen. Contrary to common belief, there may even
be instances in which the Mafia promotes public welfare. More research is
required to explain the continuing popularity of the Mafia and to identify the
social costs that make it worthwhile tackling the Mafia.
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