Abstract...MORE (12 page PDF)
The paper discusses distribution eff ects of extortion racket systems which are quite frequent in several countries and sometimes are responsible for an unexpectedly high proportion of the regional gross domestic product. The model presented here takes a system perspective, leaving individual decision making processes for further publications. It represents consumers, enterprises, criminals and the state and tries to determine under which conditions extortion racket systems come into being, survive, and can be successfully fought.
1.1 Introduction
Extortion racket systems like the ones known from ma a-like organisations in Southern Italy ('Ndrangheta, Cosa Nostra, Camorra) but also elsewhere in the world participate in the ecomomic process in a peculiar way as they sell protection against their own o ences, but also against the off ences of others, thus paralleling the state which is the rstborn agency in charge of public security. This business, belonging to the shadow economy, does not contribute to the off cial GDP but is estimated to have a size of 16 per cent of the offi cial GDP [Pin12, 18] (see also [Spi08])....
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