small businesses more. This presents a barrier to entry for entrepreneurs in Sicily and makes it difficult for small businesses to reinvest in themselves since the pizzo takes a disproportionately larger share of their profits. This in turn results in oligopolistic markets, where a few large firms dominate, selling low-quality products at high prices. Mafia extortion thus mires the Sicilian economy in a poverty trap. Protection from theft Protection from theft is one service that the Mafia provides to paying "clients". Mafiosi themselves are generally forbidden from committing theft (though in practice they are merely forbidden from stealing from anyone connected to the Mafia). Instead, mafiosi make it their business to know all the thieves and fences operating within their territory. If a protected business is robbed, the clan will use these contacts to track down and return the stolen goods and punish the thieves, usually by beating them up. Since the pursuit of thieves and their loot often goes into territories of other clans, clans routinely cooperate with each other on this matter, providing information and blocking the sale of the loot if they can. Protection from competition Mafiosi sometimes protect businesspeople from competitors by threatening their competitors with violence. If two businesspeople are competing for a government contract, the protected can ask their mafioso friends to bully their rival out of the bidding process. In another example, a mafioso acting on behalf of a coffee supplier might pressure local bars into serving only their client's coffee. The primary method by which the Mafia stifles competition, however, is the overseeing and enforcement of collusive agreements between businesspeople. Mafia-enforced collusion typically appears in markets where collusion is both desirable (inelastic demand, lack of product differentiation, etc.) and difficult to set up (numerous competitors, low barriers to entry). Industries which fit this description include garbage collection. Client relations Mafiosi approach potential clients in an aggressive but friendly manner, like a door-to-door salesman. They may even offer a few free favors as enticement. If a client rejects their overtures, mafiosi sometimes coerce them by vandalizing their property or other forms of harassment. Physical assault is rare; clients may be murdered for breaching agreements or talking to the police, but not for simply refusing protection. In many situations, mafia bosses prefer to establish an indefinite long-term bond with a client, rather than make one-off contracts. The boss can then publicly declare the client