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Download the Paper (421 K, PDF file) - January 27, 2003 Tell a colleague about it. Printing Tips: Select 'print as image' in the Acrobat print dialog if you have trouble printing.

ABSTRACT:
Drug markets have been targeted for increasingly tough enforcement yet retail prices for cocaine and heroin fell by 70-80%. No research has explained adequately why prices have fallen. This paper explores the possibility that part of the explanation may lie in the failure of drug dealers to respond to risks the way the simplest rational actor models might predict.

SUGGESTED CITATION:
Jonathan P. Caulkins and Robert J. MacCoun, "Limited Rationality and the Limits of Supply Reduction" (January 27, 2003). Center for the Study of Law and Society Jurisprudence and Social Policy Program. JSP/Center for the Study of Law and Society Faculty Working Papers. Paper 9.
http://repositories.cdlib.org/csls/fwp/9