Economics Study On Underworld Organizations Formation And Operational Mechanism

With the rapid development of the economic society in China, underworld organizations and the crimes committed have been appeared from nothing and getting more severe. This scenario has badly affected the building of a harmonious society and a healthy economy in China from all aspect, such as social, economic, cultural and political ones. under the large background of Anti-crime Action in Chongqing, the author participated in the specific research program"the campagin against gangsterdom"at Chongqing University , This paper applies relative economic theories such as institutional economics,behavioral economics,organizational behavior,game theory,Management and public choose theory to analyze and study on the existential inherency of underworld organizations, the economic operating mechanism of these organizations, the public governance of restraining underworld economy, and the market-based governance mechanism. The highlights of this issue as follows:â‘ Make an economics explanation. on existential inherency of underworld organizations. in chapter 2 the issue defines the relevant concepts of underworld organizations,applys neo-institutional economics,analysis the institutional inherency,then makes the model of underworld economy scale on the basis of above.â‘¡Make a study on mechanism of underworld organizations.In the first chapter this articles analysis the characteristics and the path of underworld organizations inbreaks legal market,describes adverse selection model of underworld organizations inbreaks legal market on game theory; secondly the articles point out that the violence is the core competitiveness on market competition,internal management and external risk resistance;then apply management theory on the underworld organization's management patten; Finally,I discuss the relationship between money laundering money,usury and fasoft of underworld crime.â‘¢Analysis the problem on governance of public policy against underworld economy,and research the countermeasures.In chapter 4,public choice theory was introduced,apply rational election theory and group operations to explain the reason of underworld organizations political change;then apply rent theory to discuss how underworld organizations to containing government;at last,study the solution to above problems.â‘£this paper offers a marketing mechanism for governing the underworld economy. In chapter 5, the auther provides some suggestions for this mechanism from two aspects, restraining the infrastructure of illegal economic market and assuring the legal one of the main competitiveness...