Mexico Cartels: Criminal Gangs Are Rational Actors

An analysis, from an economic point of view, of the logic of Mexico cartel behavior

InSight Crime: "Though notorious for their brutality, Mexico’s organized criminal groups are rational actors who respond to market dynamics. If they are not forced into a showdown or loss of face, their behavior can be influenced.

In the Mexican press, the prevailing narrative on organized criminal groups is one of irrationality, of crazed monsters on the loose, but the reality is the exact opposite. Yes, the criminal gangs’ methods are harsh and designed to compel compliance, but their intense violence and cruelty is driven by objectives that can, with expert guidance, be used to positively influence the threat they pose.

These groups are competing to prosper in a fragmenting and hyper-competitive market that has seen its primary market (drugs) placed under pressure. This has forced them to enter new markets, such as extortion of corporations and individuals, kidnapping, robbery and oil theft. The leadership of these groups are actively trying to reduce both their own risk and their "costs of doing business," while maximizing profit."

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