CLEAN SEMINAR -  Francesco Ambrosini (Uni Padova)

The next CLEAN seminar will take place on Tuesday, March 11th 2025 from 4-5PM CET in Room 5-E4-SR04 of the Roentgen building.

Francesco Ambrosini (Uni Padova) will be presenting his paper “When the Godfather Falls: Implications for Industry Peers”
 

Abstract 

This study investigates the economic impact of Mafia-connected firms on competitors in non-traditional territories using data from 57 anti-Mafia police operations in Northern and Central Italy. Removing Mafia-connected firms from these areas leads to a 7.7 percent increase in non-criminal competitors’ operating performance, driven by revenue growth and reductions in input costs, such as raw materials, labor, and rent. The competitive impact varies based on the Mafia firm’s purpose of infiltration: firms focused on rent extraction have a stronger negative effect on their peers than those primarily engaged in money laundering. Additionally, the involvement of high-ranking Mafia members and external collaborators—individuals who are not formal members but who assist in Mafia operations—further deteriorates the competitive landscape. They exploit resources and networks to enforce market dominance through unfair practices such as predatory pricing, among other tactics. These findings highlight the broader economic effects of the presence of Mafia beyond their traditional strongholds, underscoring the significant implications for market competition and firm performance following their disruption.