From anarchy to monopoly

Abstract--Mafia-like organizations are highly dynamic and
organized criminal groups characterized by their extortive activ-
ities that impact societies and economies in different modes and
magnitudes. This renders the understanding of how these orga-
nizations evolved an objective of both scientific and application-
oriented interests. We propose an agent-based simulation model
- the Extortion Racket System model - aimed at understanding
the factors and processes explaining the successful settlement
of the Sicilian Mafia in Southern Italy, and which may more
generally account for the transition from an anarchical situation
of uncoordinated extortion to a monopolistic social order. Our
results show that in situations of anarchy, these organizations do
not last long. This indicates that a monopolistic situation shall be
preferred over anarchical ones. Competition is a necessary and
sufficient condition for the emergence of a monopolistic situation.
However, when competition is combined with protection, the
resulting monopolistic regime presents features that make it even
more preferable and sustainable for the targets.