Prohibition vs. Peace
66 Pages Posted: 24 Sep 2013 Last revised: 7 Apr 2019
Date Written: October 17, 2018
Drug traffickers sometimes divide profits via peaceful agreement. Other times they fight. We propose a model to investigate this variation, focusing on the state’s effort to enforce prohibition. Seizing illegal goods generally increases trafficker profits, and higher profits fuel violence. Killing kingpins makes crime bosses short-sighted, further hindering peaceful pacts. The results help explain empirical patterns of violence in criminal war, which is less studied than interstate or civil war but often as deadly.
Keywords: Prohibition, Illegal Markets, War on Drugs, Enforcement, Violence, Supply Reduction
JEL Classification: D74, K42
Suggested Citation: Suggested Citation