3 ms·
A very interesting equilibrium too. As law enforcement increases the risk premium of running a drug market, rational markets need to compensate for that increas
by john_b 12y ago
A very interesting equilibrium too. As law enforcement increases the risk premium of running a drug market, rational markets need to compensate for that increased risk by diversifying into more lucrative activities, which in this case means adding more "evil" goods to the market.
The interesting part is that it further enables LEOs to further justify a drug war that is increasingly seen as unjustified by tying it to other law enforcement activities.