Organised Crime and Technology

55 Pages Posted: 8 Nov 2019

See all articles by Mustafa Caglayan

Mustafa Caglayan

Heriot-Watt University - School of Management and Languages

Alessandro Flamini

University of Pavia

Babak Jahanshahi

University of Edinburgh - School of Law

Date Written: November 2019

Abstract

We show that mafias harm technological development. We provide evidence that forced resettlement of bosses promoted mafias rooting in northern Italy. With forced resettlement as exogenous source of variation, we unveil that mafias cause a reduction in technology levels. Moving to a technology generating flow - innovation - we demonstrate that mafias stifle innovation. We argue that without mafia, Nature selects agents for their innovation capacity. Instead, with mafia, agents face an alternative strategy: relate with mafia; this strategy, infringing property rights and competition, hinders innovation. Using evolutionary dynamics, we show that while mafias decrease innovation, proper sanctions/indemnities can address the problem.

Keywords: organised crime, evolutionary game theory, innovation, technology

JEL Classification: O17, O30, C73, R11, K14, K42

Suggested Citation

Caglayan, Mustafa and Flamini, Alessandro and Jahanshahi, Babak, Organised Crime and Technology (November 2019). SWPS 2019-22 , Available at SSRN: https://ssrn.com/abstract=3482535 or http://dx.doi.org/10.2139/ssrn.3482535

Mustafa Caglayan (Contact Author)

Heriot-Watt University - School of Management and Languages ( email )

Edinburgh EH14 4AS, Scotland
United Kingdom

Alessandro Flamini

University of Pavia ( email )

Strada Nuova, 65
Pavia, 27100
Italy

Babak Jahanshahi

University of Edinburgh - School of Law ( email )

Old College
South Bridge
Edinburgh, EH8 9YL
United Kingdom

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