The beauty of this protection racket equilibrium is that everyone gets exactly the amount of protection they can afford. This leads to rapid and efficient re-allocation of resources (via the mafia/police) when inefficient organizations cannot meet their obligations.
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The beauty of this protection racket equilibrium is that everyone gets exactly the amount of protection they can afford. This leads to rapid and efficient re-allocation of resources (via the mafia/police) when inefficient organizations cannot meet their obligations.