A Search-Theoretic Model of the Retail Market for Illicit Drugs
16 Pages Posted: 24 Jun 2007
Date Written: June 2007
A search-theoretic model of the retail market for illegal drugs is developed. The model produces testable implications regarding the effect of interdiction and enforcement on: (a) the distribution of purity offered in equilibrium; and (b) the duration of the relationships between buyers and sellers. Some of these predictions are taken to the data using the STRIDE and ADAM datasets.
Keywords: illicit drugs, search
Suggested Citation: Suggested Citation