Extortion disguised as protection forced extortionists into actually delivering protection

Evidence

Pete and Figgy had set out with the intention of extorting money on the pretext of providing protection, but then, to avoid losing face, they were forced to honor their promises and were obliged to supply real protection. — Diego Gambetta, The Sicilian Mafia The Business of…, 75

Categorization

• XREF: Direct empirical evidence for the reader’s core model: how a private protection contract converts an extortion intent into a genuine commitment. Connects to Milgrom’s private-judge analysis and to the opening Bonasera scene where Don Corleone’s word functions as enforceable bond.
• QUESTION: This is the seed of the ‘Godfather-bond’ idea — reputational lock-in converts an empty threat into a real obligation. Worth chasing: what exactly is the mechanism that converts, and how does it map to Schelling’s credible commitment? Is it loss-aversion or reputation-capital at work?