Empirical Crime Economics Framework

Illicit Enterprise Diversification & Victimization Risk Simulator

When criminal cartels shift away from violent territorial narcotics into utility monopolies, transport extortion, and digital scams, the murder rate drops—yet everyday citizen exposure odds rise exponentially.

Annual Victim Exposure
64.8%
↑ +42% vs turf-war era
Homicide Rate (per 100k)
14.2
↓ -61% (Peace by Cartel)
Illicit Household "Tax"
$62 / mo
~18% of min wage
Revenue Decoupling Index
4.56x
Soft crime dominance

Revenue vs. Victim Exposure Trajectory

Simulating the "Less Murder, More Money" inflection as cartels institutionalize.
Micro-Vector Citizen Exposure Breakdown Extortion & Coercion Likelihood by Routine Domain
Cooking Gas (GLP) & Water 78%
Internet / Clandestine TV 84%
Pix / Social Engineering 62%
Vans / Informal Transit 55%
Model state computed: 4,800 synthetic households evaluated across 6 vector channels.

The Mechanics of "Soft" Crime Diversification

Historically, organized crime focused on high-margin, high-violence illicit commodities (primarily cocaine trafficking). Violent turf conflicts between factions resulted in massive homicide spikes.

As criminal groups achieved territorial dominance (e.g., the PCC in São Paulo or Paramilitary Milícias in Rio de Janeiro), they realized that open gunfights invited heavy police disruption. Instead, they adapted into predatory rentiers:

  • Infrastructure Capture: Slashing legitimate telecom fiber cables to force residents onto overpriced pirate networks.
  • Basic Commodities: Imposing a $5 to $10 mark-up on every cylinder of cooking liquefied petroleum gas (GLP).
  • Predatory Digital Banking: Exploiting instant settlement systems (Pix) for rapid social-engineering scams and flash kidnappings.

The Decoupling Paradox

Police blotters often celebrate plunging murder rates as evidence of public security triumphs. However, the simulation proves that lower homicide does not equal lower criminal presence.

When a single criminal organization eliminates rival factions, armed confrontations decline. But with territorial pacification comes complete extractive leverage:

  • Universal Victimization: While drug gang firefights endangered bystanders near point-of-sale bunkers, utility extortion levies a regressive tax on 100% of households in captured zones.
  • Institutional Infiltration: Monopolistic revenue is funneled into municipal contracts, real estate speculation, and political campaigns, hardening criminal resilience.
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