A MAJOR PURPOSE OF THE ANALYSIS IS TO DESIGN A PIECE OF A STRATEGY FOR 'REGULATING' THE DISTRIBUTION OF HEROIN UNDER A POLICY THAT 'PROHIBITS' ALL USES OF HEROIN. THE ANALYSIS IS COMPOSED OF THREE PARTS. PART ONE SYSTEMATICALLY EXPLORES THE IMPACT OF ILLICITNESS ON THE BEHAVIOR OF INDIVIDUAL HEROIN DEALERS, CONSUMERS, AND THE STRUCTURE OF DOMESTIC-DISTRIBUTION SYSTEMS. THE FIRST SECTION DEVELOPS A GENERAL DESCRIPTION OF THE MAJOR FEATURES OF ILLICIT-DISTRIBUTION SYSTEMS. THE TECHNIQUE IS TO IDENTIFY PROBLEMS CREATED BY ILLICITNESS FOR BOTH DEALERS AND CUSTOMERS, AND TO IDENTIFY POSSIBLE SOLUTIONS. EFFICIENT SOLUTIONS TO THESE PROBLEMS BECOME HYPOTHESES ABOUT HOW DEALERS WILL BEHAVE. AGGREGATIONS OF THE BEHAVIOR OF INDIVIDUALS DEALERS YIELD HYPOTHESES ABOUT THE STRUCTURE OF THE SYSTEM. THE SECOND SECTION USES THIS GENERAL MODEL TO DEVELOP QUANTITATIVE ESTIMATES OF THE SIZE, VOLUME, AND PROFITABILITY OF THE ILLICIT-DISTRIBUTION SYSTEM CURRENTLY OPERATING IN NEW YORK CITY. PART TWO ANALYZES THE ARRAY OF STRATEGIES AND TACTICS AVAILABLE TO ENFORCEMENT OFFICIALS IN ATTACKING THE ILLICIT-DISTRIBUTION SYSTEM. THE STRATEGIES ARE ANALYZED IN TERMS OF THEIR DIRECT AND INDIRECT EFFECTS ON THE CHARACTER OF HEROIN-DISTRIBUTION SYSTEMS. DIRECT EFFECTS ARE THE SET OF CASES DEVELOPED AGAINST TRAFFICKERS. INDIRECT EFFECTS ARE THE INCENTIVES CREATED FOR DEALERS ON THE STREET BY THE THREAT OF BEING ARRESTED THROUGH THE SAME TACTICS THAT RESULTED IN THE ARREST OF THEIR PEERS. THE STRATEGIES ARE ALSO ANALYZED IN TERMS OF THE RESOURCES THEY REQUIRE - BOTH THE TOTAL RESOURCES AND THE SPECIALIZED RESOURCES THAT ARE LIKELY TO BE IN SHORT SUPPLY. PART THREE DESIGNS AND RECOMMENDS A STRATEGY FOR USING DOMESTIC LAW ENFORCEMENT AGENCIES TO ENFORCE THE PROHIBITION OF HEROIN. IT SETS OBJECTIVES OF LAW ENFORCEMENT IN THE CONTEXT OF AN OVERALL POLICY TOWARD HEROIN USE, RECOMMENDS BOTH STRATEGIES AND TACTICS, AND IDENTIFIES MAJOR BUREAUCRATIC OBSTACLES TO IMPLEMENTATION OF THE PROPOSED STRATEGIES. AN EIGHT-PAGE BIBLIOGRAPHY AND AN INDEX ARE PROVIDED. (AUTHOR ABSTRACT) (SNI ABSTRACT)...ELW