David Friedman and organized crime

rfmcelroyiii's avatarRandall McElroy III

I went to an informal seminar of David Friedman’s tonight based on his academic workshop and developing book about Legal Systems Very Different from Ours. I encourage you to read the available material so far, as it’s very interesting law & economics. He mostly talked about the section on Amish law, with some comments also about Gypsy and Somali law. During the Q&A he solicited feedback about other possible areas to explore for the book, and somehow organized crime came up.

Friedman’s thinking about organized crime is that it’s not quite as organized as it’s made out to be. The optimal size of the firm is determined by economies and diseconomies of scale. One of the things larger organizations need is constant information flow between the different levels, and one problem with organized crime is that this information can put people in jail, so it would tend to flow…

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