Risks and Prices: An Economic Analysis of Drug Enforcement

Medico-legal issues of body packing: what do clinicians need to know?

“…Research suggests that the impact of law enforcement on drug prices is most appreciable in new or emerging markets, or when it induces market shocks in established markets. 176,177 Research confirms that ultimately higher costs imposed on drug trafficking by criminal justice interventions can translate into a reduction in illicit drug use in the long term, 178 although this does not automatically result in a reduction in market size. Indeed, it is not enough to rely exclusively on price increases as a deterrent to drug use, and it is essential to ensure that the reduction in demand, which is assisted by a price increase, actually outperforms that increase.…”

What Can We Learn from the Dutch Cannabis Coffeeshop Experience?

“…If high-level Dutch traffickers face an enforcement risk, they presumably pass this along in higher prices down the supply chain (Reuter & Kleiman, 1986).…”

Risks and Prices: The Role of User Sanctions in Marijuana Markets

“…location, relationship between buyer and seller) exist that influence the legal risk of getting caught in any given exchange. Galenionos et al (2009) provide a theoretical formalization of this model for the case of heroin markets, but it was first described generally by Reuter and Kleiman (1986). Given our focus on the impact of legal risk to the buyer, we develop a simple reduced form model of the average price for marijuana (Pj t ) within local market j at time t that shows the mechanisms through which buyer's risk and seller's risk operate.…”