Economics Detective Radio cover image

Economics Detective Radio

Biker Gangs, Organized Crime, and Club Goods with Ennio Piano

Dec 22, 2017
01:02:13

My guest for this episode is Ennio Piano of George Mason University. Our topic is Ennio's work on the economics of biker gangs.

Ennio has two papers on this subject. The first, published in Public Choice, is entitled Free riders: the economics and organization of outlaw motorcycle gangs and it describes the franchise-style model of the Hell's Angels motorcycle gang, and how that model contributed to that gang's rise to prominence. By making the local chapters of the Hell's Angels residual claimants, while the head chapter in Oakland is responsible for the gang's name and reputation, the gang exploits local knowledge while also coordinating activities internationally.

The second paper, Outlaw and economics: Biker gangs and club goods describes how the norms and rituals of biker gangs fit with the theory of club goods. Costly, unreliable motorcycles and even Nazi tattoos can be explained through this theory: they are credible commitments to remain loyal to the club. This behaviour is similar in purpose to rituals practice by many religious sects.

We discuss the history of biker gangs and the gang wars of the 1990s. Finally, Ennio describes the relationship between biker gangs and other criminal organizations such as the Mafia and Mexican drug cartels.

Get the Snipd
podcast app

Unlock the knowledge in podcasts with the podcast player of the future.
App store bannerPlay store banner

AI-powered
podcast player

Listen to all your favourite podcasts with AI-powered features

Discover
highlights

Listen to the best highlights from the podcasts you love and dive into the full episode

Save any
moment

Hear something you like? Tap your headphones to save it with AI-generated key takeaways

Share
& Export

Send highlights to Twitter, WhatsApp or export them to Notion, Readwise & more

AI-powered
podcast player

Listen to all your favourite podcasts with AI-powered features

Discover
highlights

Listen to the best highlights from the podcasts you love and dive into the full episode