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Klevakin A.N., Gurban I.A. Effect of the price factor upon the illegal drug trade (on the example of Sverdlovsk Oblast)

Abstract: The subject of this research is the factor of pricing policy on the psychoactive substances that produces a specific effect on the behavior of the actors of the illegal drug trafficking. The authors review a question about the interest of drug dealers in receiving excess profit, and claim that manipulating retail price allows orienting a sensitive on price consumer to switching towards the more new psychoactive substances, more profitable for the drug traffickers. The authors conclude that in order to get maximal pure profit, the drug dealers improve the already established schemes of the illegal drug trade. Due to this fact, the question of determination of the influence of price factor upon changes in volume and assortment of the psychoactive substances that form the narcotic market, gains relevance. A conclusion is made on the dominant influence of the traffickers of the psychoactive substances upon the changes in illegal drug market nomenclature via affecting the price factor that directs consumers towards choosing the less expensive synthetic narcotics.   

Keywords:

informal economy, drug market, psychoactive substances, drugs, price factor, illegal economy, legal psychoactive substances, drug users, new potentially hazardous substances, drug policy, informal economy, drug market, psychoactive substances, drugs, pricing factor, illegal economy, legal psychoactive substances, drug users, new potentially-harmful substances, anti-narcotic policy

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