Monday, August 10, 2009

The industrial organization of extortion

Extortion is illegal, but still tolerated in some parts of the world. Understanding it well is key to eradicate it. Benjamin Olken and Patrick Barron have recently published a fascinating article that describes extortion at weigh stations and roadside check points in Aceh, Indonesia. They managed to record about 6000 transactions at these location by having observers ride along on trucks on the

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