Construction firms pay mafiosi for dispute resolution and labor control, not intimidation

Evidence

The services offered by mafiosi are comprehensive. The Cassina construction firm won a contract to build the new banks of a river which cut across the town of Ribera. Threatened with prosecution, Luciano Cassina revealed that “the sums we paid were not for material supplies received from [Carmelo] Colletti, but represented payment for ‘services’ of a different nature which Colletti had provided for us” (OSAG: 98-99; OSAG Arnone: 153). The builder was eager to stress that he had not been intimidated by Colletti, who “had always behaved correctly.” Don Carmelo “solved problems,” such as ensuring a constant and reliable flow of building materials to the site (OSAG Arnone: 193), mediating on every controversy with the locals (pp. 149-151), “preventing trade union activities which might jeopardize the productivity of the site” (OSAG: 170), and making sure no thefts occurred (p. 151). — Diego Gambetta, The Sicilian Mafia The Business of…, 428

Categorization

Category: Causal Relationships

  • XREF: Direct evidence for the Gambetta private-protection market model; the Cassina-Colletti contract is the archetypal private enforcement arrangement, and the trade-union suppression clause connects to Milgrom et al.’s merchant judge solving the commitment problem among parties with no state.

Broader Connections