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NCJ Number: 202388 Find in a Library
Title: How Narcotics Traffickers Set Prices
Author(s): William Rhodes
Corporate Author: Abt Associates, Inc
United States of America
Date Published: January 29, 2003
Page Count: 16
Sponsoring Agency: Abt Associates, Inc
Cambridge, MA 02138
Sale Source: Abt Associates, Inc
55 Wheeler Street
Cambridge, MA 02138
United States of America
Type: Report (Study/Research)
Format: Document (Online)
Language: English
Country: United States of America
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
Main Term(s): Drug prices
Index Term(s): Controlled Substances; Drug business; Drug manufacturing; Drug smuggling; Drug statistics
Note: Downloaded on September 25, 2003.
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