Does The Appearance Of Organized Crime Increase Or Decrease The Welfare Of Our Society-a Quantitative Method

The organized crime, as a crime form that involves more people and impacts the community more profoundly than individual crimes, has long be criticized by jurists and sociologists and they have been working on how to control or even eliminate organized crime.This paper begins with the analysis of the social reason for the formation of organized crime and generalizes the characteristics of organized crime. Then the paper moves to analyzing the impact that organized crime may have on the welfare of our society by employing Nash-Cournot model and Stackelberg model. After that, the paper looses some assumptions to analyze the organized crime's impact on the society's welfare under different conditions. Meanwhile, the paper also discusses what would happen when the detection and conviction divisions are separated and the optimal policies these two divisions should implement to maximize the society's welfare. At last, the paper analyzes the organized crime's own crime behavior's effect upon the crime market and the economical reason for the existence of organized crime.