What Drug Dealers Tell Us About Their Costs of Doing Business

@inproceedings{Caulkins1998WhatDD,
  title={What Drug Dealers Tell Us About Their Costs of Doing Business},
  author={Jonathan P. Caulkins and Bruce Johnson and Angela P. Taylor and Lowell J. Taylor},
  year={1998}
}
Interviews with low-level drug dealers in New York City reveal that the monetary costs of distributing drugs are modest. Hence, the proportion of sales revenue retained by these sellers is a meaningful indicator of their earnings. There are four distinct types of sellers, with systematic differences across types in the proportion of sales revenue retained. Entrepreneurs who own the drugs they sell retain the largest share (about 50%). Independent consignment sellers retain less (about 25… CONTINUE READING

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