The first book to apply economic theory to the analysis of all aspects of organised crime.

Foreword; 1. Introduction Gianluca Fiorentini and Sam Peltzman; Part I. Theories of the State and the Origin of Criminal Organisations: 2. Organised crime, Mafia and governments Annelise Anderson; Discussion Maurizio Franzini; 3. Gangs as primitive states Stergios Skaperdas, and Constantinos Syropoulos; Discussion William J. Baumol; Part II. The Criminal Organisation as a Firm: 4. Internal cohesion and competition among criminal organisations Michele Polo; Discussion Pier Luigi Sacco; 5. Conspiracy among the many: the Mafia in legitimate industries Diego Gambetta and Peter Reuter; Discussion Luigi Campiglio; Part III. Organised Crime and State Intervention in the Economy: 6. Rival kleptocrats: the Mafia versus the state Herschel I. Grossman; Discussion Marco Celentani; 7. Corruption: arm's-length relationships and markets Vito Tanzi; Discussion Flavio Delbono; Part IV. Deterrence Policies Against Legal Firms Involved in Illegal Activities: 8. Auditing with 'ghosts' Frank A. Cowell and James P. F. Gordon; Discussion Domenico Siniscalco; 9. The reputational penalty firms bear from committing criminal fraud Jonathan M. Karpoff and John R. Lott Jr.; Discussion Michele Polo; Part V. Deterrence Policies Against Organised Crime: 10. Regulating the organised crime sector Marco Celentani, Massimo Morelli and Riccardo Martina; Discussion Carlo Scarpa; 11. Oligopolistic competition in illegal markets Gianluca Fiorentini; Discussion Sam Peltzman; Index.