NCJ Number
202388
Date Published
January 2003
Length
16 pages
Annotation
This paper attempts to provide an understanding on how narcotics traffickers set prices within the source and transit zones.
Abstract
The Nation’s anti-drug efforts are often characterized as being demand-side or supply-side. Arguably a great deal of money is and has been invested in demand-side research, such as what has been invested by the National Institute on Drug. However, there is no comparable agency supporting supply-side research, and the supply-side policy does not lend itself to scientific study. This paper represents a panel discussion, held in 2003 in an attempt to answer how narcotics traffickers set prices within the source and transit zones. The paper begins with a presentation on an economic model of drug markets which says that all traffickers seek to maximize profits while taking acceptable risks. The paper then draws inferences from this model. Discussion includes: (1) at what price can a dealer sell drugs; (2) drug prices and revenues from sales; (3) cost factors; and (4) how good are the price estimates. Tables, references