Date of This Version
How does the timing, targets and types of anti-crime policies affect a network when criminal retailers search sequentially for wholesalers and crime opportunities? Given the illicit nature of crime, I analyze a non-competitive market where players bargain over the surplus. In such a market, some anti-crime policies distort revenue sharing, reduce matching frictions and increase market activity or crime. As an application, the model provides a new perspective on why the U.S. cocaine market saw rising consumption after the introduction of the “War on Drugs.”
Working Paper Number
Engelhardt, Bryan, "Crime Networks with Bargaining and Build Frictions" (2008). Economics Department Working Papers. Paper 47.