Territorial Monopolies
A protection racketeer cannot tolerate competition within his sphere of influence from another racketeer. If a dispute erupted between two clients (e.g. businessmen competing for a construction contract) who are protected by rival racketeers, the two racketeers would have to fight each other to win the dispute for their respective clients. The outcomes of such fights can be unpredictable, and neither racketeer would be able to guarantee a victory for his client. This would make their protection unreliable and of little value; their clients would likely dismiss them and settle the dispute by other means. Therefore, racketeers negotiate territories in which they can monopolize the use of violence in settling disputes. These territories may be geographical, or they may be a certain type of business or form of transaction.
Read more about this topic: Protection Racket
Famous quotes containing the word territorial:
“All the territorial possessions of all the political establishments in the earth—including America, of course—consist of pilferings from other people’s wash.”
—Mark Twain [Samuel Langhorne Clemens] (1835–1910)