Friday, June 03, 2005

Supply and demand different for illegal markets

Black market goods such as illegal drugs don't follow the usual rules of supply and demand, argues Mark Kleiman here.

If Californians were allowed to grow, sell, and use intrastate marijuana for medical purposes, Kleiman argues that the resulting reduction in demand for illicit marijuana would actually raise prices on the national marijuana market, rather than lower them as the textbooks would say. It's all to do with the dominant costs of your product, he argues, and when "the dominant cost facing any producer is the cost imposed by law enforcement" then the cost mechanisms are just a little different than normal.

1 Comments:

Anonymous Robin Thomsen said...

Play the Drug Lord simulator PC, let us know how you go :-) http://www.geekhideout.com/druglord2.shtml

6/03/2005 07:39:00 pm  

Post a Comment

Respond with a polite and intelligent comment. (Both will be applauded.)

Say what you mean, and mean what you say. (Do others the courtesy of being honest.)

Please put a name to your comments. (If you're prepared to give voice, then back it up with a name.)

And don't troll. Please. (Contemplate doing something more productive with your time, and ours.)

Links to this post:

Create a Link

<< Home