Mafia entry costs are lower where a protection class already exists

Evidence

As for the production and sale of commodities, performing “Peppe’s” role requires certain resources. Let us conduct a thought experiment and ask ourselves how we would go about producing and selling guarantees and protection. Assume, therefore, that among our options for a career, if not necessarily a brilliant one, is that of becoming a “Peppe.” If we live in a country where there is already an established class of “Peppes,” our imagination is less severely taxed by envisioning this possibility; also the costs of apprenticeship are reduced relative to those for someone who must start from scratch. — Diego Gambetta, The Sicilian Mafia The Business of…, 89

Categorization

Category: Definitional Content

  • XREF: Gambetta’s ‘Peppe’ thought-experiment device directly mirrors how the reader should model the protection firm — treating the mafioso as a producer facing market-entry costs like any capitalist.