The New Palgrave Dictionary of Economics

2018 Edition
| Editors: Macmillan Publishers Ltd

Illicit Drugs, Retail Market

  • Manolis Galenianos
Reference work entry


Three key features of the retail trade for illicit drugs are documented: moral hazard, repeated interactions and price dispersion. An interpretation of this evidence based on search and informational frictions is presented. Various policy implications of the suggested interpretation are discussed.


Drugs Cocaine Heroin Informational friction Narcotics 

JEL Classifications

J64 K14 K42 
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Copyright information

© Macmillan Publishers Ltd. 2018

Authors and Affiliations

  • Manolis Galenianos
    • 1
  1. 1.