Protection against competitors is equivalent to extortion against entrants

Evidence

The matter is therefore one of perspective. Whether we are dealing with extortion or genuine protection depends on whether we are the new entrant or the protected dealer. In essence the two are equivalent, as it is impossible to protect someone against competition without damaging competitors at the same time. The same applies to lobbies, governments, and the mafia. In short, there is no economic reason to prevent oligopolies from paying organized crime for protection against competitors. — Diego Gambetta, The Sicilian Mafia The Business of…, 82

Categorization

  • XREF: Connects directly to reader’s Gambetta framework: this is the key asymmetry between protection-from-predation and protection-from-competition, mirroring the cartel/monitoring distinction in the diamond-trade readings.
  • DEEPTHINKING: The equivalence claim — protection from competition and extortion are the same act seen from two perspectives — is analytically dense and overturns a reflexive moral distinction. This is the kind of claim that reframes how one reads coercion.