Affiliation:
1. Nanyang Technological University
2. School of Economics, Fudan University and Shanghai Institute of International Finance and Economics
3. Boston University
4. Tilburg University
Abstract
Abstract
We estimate a structural model of bargaining between a branch of a large transnational gang and pushers using data from detailed records kept by the gang. The model allows for the gang’s relative bargaining power to differ for pushers with different characteristics, such as those with addictions or borrowing problems. Exploiting supply shocks in our data, we use the estimated model to study the effectiveness of various enforcement strategies. We find that targeting pushers is more effective at reducing quantities sold compared to targeting the gang’s upstream supply chain.
Funder
Nanyang Technological University
Singapore Ministry of Education
NTU
Tilburg University
CEPR VIOS
Boston University
Yale University
IIOC
Publisher
Oxford University Press (OUP)
Subject
General Economics, Econometrics and Finance
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