Illicit Markets: A Short Historical Summary
As long as certain commodities and services are deemed illegal by the state, illicit markets will exist if there is significant demand for them. Prohibition gives illicit materials a higher price, as risk-takers form cartels and indulge in criminal operations to make as much money as possible. This has been true throughout history in most corners of the world. This chapter will discuss moments in history when the state tried to ban certain goods for the purpose of morality. Most of the time, the result has been the formation of black markets to supply the good.