2019-04
AUTHORS ABSTRACTThe distribution of illegal drugs on local markets is closely related to the phenomenon of gang wars. In a simple model of a local monopoly gang it is studied how the simultaneous decision on the number of low-rank gang members and the local retail market drug prices may affect gang wars. The drug distribution technology is described by a concave production function that contains low-rank gang members as a production factor. One key factor is added to a simple model of such a monopoly retail market for drugs: there is a gang membership benefit for low-rank members that makes these members cheap workers. This feature implies that increases of the membership value decrease drug prices by expanding the number of low-rank members. More... »
PAGES37-46
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DOIhttp://dx.doi.org/10.1007/s10818-018-09281-x
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