Illegal firms cannot own their trademarks, so outsiders determine their names

Evidence

In advertising an illegal business, one must rely on accidental and externally generated symbols, a recourse that inevitably causes confusion and instability among the symbols themselves, for there are no laws to protect property rights over the names and trademarks which are created in this way. The “true” trademark is the one that outsiders use, and even if one wants to distinguish oneself from the rest and adopt a new name, the relationship must still be maintained. The real name is that which best conveys reputation and achieves intimidation. — Diego Gambetta, The Sicilian Mafia The Business of…, 362

Categorization

Category: Causal Relationships

• XREF: Connects to Milgrom et al.’s private-judges model: without state property-rights enforcement, even symbolic ‘trademarks’ depend on external recognition mechanisms.
• ADDENDUM: Relevant to ‘On Sacrifice’ article’s theme of third-party enforcement substitutes — the name here functions as the protection firm’s own hostage/credible-commitment.

Broader Connections

• Illegality prevents mafia reputation from detaching from particular owners, blocking firm expansion #expands (0.85) — Diego Gambetta, The Sicilian Mafia The Business of…, 167