The market process for heroin functions similarly to economic markets in general. The strategies considered in this analysis are controlling supply through law enforcement and other strategies, controlling demand by detaining addicts, or reducing illicit market activity by introducing an effective substitute for the services of that market. The analysis suggests that when all the social costs of addiction are taken into account and when minimizing the total of those costs is taken to be the objectives, the best solution lies with the establishment of a drug maintenance program. A properly administered program would undermine the illicit market by reducing demand. Such a program can also be expected to reduce levels of drug-related crimes and to moderate factors that encourage addiction. Figures, footnotes, and 28 references (Author abstract modified)