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The Mafia Model - Interaction between police, mafia and storewoners

by Adrian Haugen Ordemann and Benedito Faustinoni Neto (Submitted: 05/04/2014 )

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Download The Mafia Model - Interaction between police, mafia and storewoners
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(You can also run this model in your browser, but we don't recommend it; details here.)

## WHAT IS IT?

This model intends to simulate the interaction of a mafia-based economy.
Resources spent on the police and social norms by the government will affect the outcome
of black wealth.

## HOW IT WORKS

The market will grow profit according to the endowment-rate, green patches indicates profit obtainable for storeowners. Red patches have no profit.
Mafious wants to make interactions with storeowners to increase their power. Storeowners will pay them regarding several social factors.
The Police interact with mafious, either the mafia has to pay a bribe, or the police will
help the mafia in controlling the market.

## HOW TO USE IT

First of all, you should adjust the sliders and the switch according to the state of the world you wish to simulate.
Then press the setup button to create this initial state of the world.
To run the model, and begin all the interactions in the model, press the go-button.
As time goes, you can look at the different monitors to observe money flow, black wealth and the population of the storeowners.

Endowment? decides if there should be growth of profit or not
Endowment-rate decides the growth of profit in the market
Storeowners-multiply decides the limit of profit for a storeowner to give birth to a new storeowner. This can mean that he's expanding his business.
storeowners-thrust-in-govs-ability-to-fight-mafia gives its own explanation. Changes in public interventions which will affect short-term norms will induce changes in this one.
Police-power captures the governments abilites to fight against the mafia.

## THINGS TO NOTICE

The core of the strength of public interventions applied to social norms, is that it's able to increase the efficiency of the economy, by changing behavior. By changing the slider storeowners-thrust-in-govs-ability-to-fight-mafia for a small amount of time, a benchmark for social norms may be reached so that the government may get long-term
beneficial effects regarding behavior and black wealth, even when the slider storeowners-thrust-in-govs-ability-to-fight-mafia returns to its initial position.

## THINGS TO TRY

Try to find the benchmarks for making long-term beneficial effects in black wealt by doing some short-term public intervention, by changing storeowners-thrust-in-govs-ability-to-fight-mafia for a short amount of time.

## EXTENDING THE MODEL

The relationship between the variables could be estimated and implemented in the model to make it more realistic, as a part of the syntax or as a slider according to uncertainty. The interaction between the agents could be more complex, storeowners could affect each other, police could have interacted with the storeowners to check if their business was legal. The public interventions affecting social norms, here through storeowners-thrust-in-govs-ability-to-fight-mafia, could be separated into different types of expenditures in public interventions, norms management, regulations, financial interventions and changing architecture, to make it more suitable for real life. Then the storeowners propensinsity to adapt these norms could be adjusted by a slider, to simulate different network structures and societies.

## Related models

"Mafianomics" http://web.econ.unito.it/terna/tesine/mafianomics.htm

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