Caulkins, Jonathan P; Reuter, Peter; Taylor, Lowell J - In: The B.E. Journal of Economic Analysis & Policy 5 (2006) 1
Abstract The standard model of markets for illicit drugs predicts that tougher enforcement against sellers will raise prices; yet cocaine and heroin prices have fallen substantially during a period of massive increases in enforcement. We present a model in which the basic mechanisms at work in...
