PRFDHR Seminar: Market Structure and Extortion: Evidence from 50,000 Extortion Payments in El Salvador, Professor María Micaela Sviatschi
How do gangs compete for extortion? Using detailed data on individual extortion payments to gangs and sales from a leading wholesale distributor of consumer goods and pharmaceuticals in El Salvador, Professor Sviatschi and her co-authors document evidence on the determinants of extortion payments and the effects of extortion on firms and consumers. They exploit a 2016 non-aggression pact between gangs to examine how collusion affects extortion in areas where gangs previously competed.