All illicit markets share state-defined illegality plus lack of state protection

Evidence

The concept of illegality is an elastic one whose boundaries are determined at the discretion of the state. The definition of what constitutes an illegal commodity is subject to changes in legislation and varies from country to country. There is one feature, however, that all illicit markets have in common: they are both unprotected and subject to legal action. — Diego Gambetta, The Sicilian Mafia The Business of…, 606

Categorization

• XREF: Core to the reader’s project: defines the state-failure condition that activates Gambetta’s private protection demand, connecting to Milgrom’s private judges and the Bonasera opening.