The mafia protection contract parallels the labor contract’s internalization logic.

Evidence

Readers acquainted with economics should immediately appreciate the similarities between the protection contract and the labor contract which internalizes the labor force rather than buying its products on the open market. In the case of labor, however, it is the suppliers and not the buyers who are internalized. — Diego Gambetta, The Sicilian Mafia The Business of…, 819

Categorization

• XREF: Connects directly to the reader’s core theoretical frame: protection as internalizing a transaction, parallel to firm theory (Coase/Williamson) and to Milgrom’s analysis of private judges.