In the Shadow. Illegal Markets and Economic Sociology

Abstract

Illegal markets differ from legal markets in many respects. Although illegal markets have economic significance and are of theoretical importance, they have been largely ignored by economic sociology. In this article we propose a categorization for illegal markets and highlight reasons why certain markets are outlawed. We perform a comprehensive review of the literature to characterize illegal markets along the three coordination problems of value creation, competition, and cooperation. The article concludes by appealing to economic sociology to strengthen research on illegal markets and by suggesting areas for future empirical research.

Explaining Counterfeit Alcohol Purchases in Russia

“…Consumers who have social networks of nonbeverage alcohol drinkers and producers of homemade alcohol are highly likely to have access to extra information about features of purchased beverages, and these individuals consume counterfeit alcohol deliberately. The important role of social networks can be explained by their potential to reduce product uncertainty (Beckert and Wehinger, ) derived from indifference to brands. Social networks that translate information about the quality of products might secure consumption.…”

La regulación del comercio en Bolivia: de la economía informal al mercado extralegal

“…En este mercado, las disputas entre los agentes económicos son solucionadas por la vía de acuerdos verbales y no a través del sistema jurídico, pese a que el primer caso podría ser denunciado ante la Autorización de Fiscalización de Empresas (AEMP), dependiente del Ministerio de Desarrollo Productivo y Economía Plural, que actúa en casos de conductas anticompetitivas 4 , aunque la normativa anti-competitiva no se encuentra muy desarrollada en Bolivia 5 . También la NCPE (artículo 314) y el Código Penal (artículo 233) prohíben el monopolio privado de importación, producción y distribución de mercadería.…”

The Violence of Development: Guerrillas, Gangs, and Goondas in Perspective

“…In most cases, this has involved what might be termed "petty capital accumulation", as most gang activities involves small-scale, localized crime and delinquency such as theft and muggings, as well as, sometimes, extortion and racketeering (Fleisher, 1995;Rodgers, 2006;Thrasher, 1927), although there is a long tradition of studies highlighting how gangs can also facilitate more lucrative economic activities such as drug dealing (Bourgois, 1995;Padilla, 1992). Certainly, gangs can further and protect economic activities through the use or threat of violence which, in economic terms, operates to protect market position and enforce contracts (Beckert and Wehinger, 2013). At the same time, however, gangs need to be careful on how and how much violence is deployed so as not to draw attention from police or security agencies or the retaliation of local communities (Sánchez Jankowski, 1991;also Anderson, 1999).…”