Historique
Bulletin de Périodique
NBER Working Papers , n°14980 - May 2009 - A search-theoretic model of the retail market for illicit drugs
Auteur(s) :
GALENIANOS, M. ;
PACULA, R. L. ;
PERSICO, N.
Paru le :
01/05/2009
Année
2009
Page(s) :
50 p.
Langue(s) :
Anglais
Refs biblio. :
25
Domaine :
Drogues illicites / Illicit drugs
Discipline :
MAR (Marchés / Markets)
Thésaurus mots-clés
THEORIE
;
MODELE
;
MARCHE DE LA DROGUE
;
PRODUIT ILLICITE
;
PURETE
;
VENTE
;
ACHAT
;
ECONOMIE
;
QUALITE
Résumé :
A search-theoretic model of the retail market for illegal drugs is developed. Trade occurs in bilateral, potentially long-lived matches between sellers and buyers. Buyers incur search costs when experimenting with a new seller. Moral hazard is present because buyers learn purity only after a trade is made. This model is consistent with some new stylized facts about the drugs market, and it is informative for policy design. The effectiveness of different enforcement strategies is evaluated, including some novel ones that leverage the moral hazard present in the market.
Affiliation :
Pennsylvania State University, State College, PA, USA