Journal of Law, Economics, and Organization Advance Access published online on November 7, 2008
Journal of Law, Economics, and Organization, doi:10.1093/jleo/ewn021
Putting the "Con" into Constitutions: The Economics of Prison Gangs
George Mason University
* George Mason University, Department of Economics, 4400 University Drive, MSN 3G4 Fairfax, VA 22030. Email: dskarbek{at}gmu.edu.
This paper investigates the internal governance institutions of criminal enterprise by examining the law, economics, and organization of the La Nuestra Familia prison gang. To organize effectively within the confines of penitentiaries, the gang needs to provide a credible commitment for member safety to potential entrants and a means of preventing predation and misconduct within the gang. I analyze the governance structure outlined in the gang's written constitution and show how it solves the collective action problems associated with multilevel criminal enterprises. (JEL D23, K42, L23, P16)