Market Price of Illegal Drugs as a War on Drugs Success Indicator
Mgr. Marcela Demková, Centre of International Studies, Jan Masaryk, University of Economics
The price of illegal drugs is often used as an important or even sole indicator of the success of the War on Drugs, which is a set of repressive measures against the supply side of drug markets. It is based on the classical economic model of aggregate supply and aggregate demand. The repressive measures should increase the price of illegal drugs, thus making them less attractive for the consumers. This paper examines why the price is a useful but not entirely reliable indicator of the success of anti-drug efforts.
Keywords: drug supply, drug demand, drug price, War on Drugs, anti-drug measures, drug price elasticity of demand.