Protection Racket

ABSTRACT

In this document, we will present an analysis of quali-quantitative data on Extortion Rackets in Sicily. The second section provides an introduction to the interpretative framework on Extortion Racket Systems (ERSs). Therefore, the third section takes into account the methodological issues in the collection and analysis of data on extortions. The fourth and five sections offer an analysis on the types of extortion and the correspondent behaviour of the victims, followed by a focus on the process of extortion. An overview of the case-studies analysis on mafia-type organizations ends the document.

1. Executive summary

In the document a summary of quali-quantitative data and analysis on Extortion Rackets in Sicily is presented. Firstly, an introduction to the interpretative framework on Extortion Racket Systems (ERSs) is provided. Connections between ERS and mafia-type organizations, as well as normative questions related to the crime of extortion into the criminal justice system are

Abstract
While the contributions on the organized crime and Mafia environments are many, there is a lack of empirical evidence on the firm’s decision to resist to extortion. Our case study is based on Addiopizzo, an NGO that, from 2004, invites firms to refuse requests from the local Mafia and to join a public list of “non-payers”. The research is based on a dataset obtained linking the current administrative archives maintained by the chambers of commerce and the list updated by the NGO. The objective of this paper is twofold: first, to gather sound data on the characteristics of the Addiopizzo joiners; second to model the probability to join Addiopizzo by a two-level logistic regression model. We find that the resilience behavior is likely to be the result of both individual (firm) and environmental factors. In particular, we find that firm’s total assets, firm’s age and being in the construction sector are...