A framework is developed in which the formation of gangs-the criminal market structure-is endogenous. As in standard models of crime, under a given gang structure, an increase in deterrence reduces criminal output. However, under identifiable circumstances, an increase in deterrence can lead to...

A framework is developed in which the formation of gangs - the criminal market structure - is endogenous. As in standard models of crime, under a given gang structure, an increase in deterrence reduces criminal output. However, under identifiable circumstances, an increase in deterrence can lead...

This paper investigates the industrial organization of criminal enterprise. We argue that differences in contestability across criminal industries crucially shape how producers in these industries organize. In more contestable criminal industries, producers use organizational hierarchy as a...