Letizia Paoli, Victoria A. Greenfield, and Peter Reuter
- Published in print:
- 2009
- Published Online:
- May 2012
- ISBN:
- 9780195322996
- eISBN:
- 9780199944194
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780195322996.003.0004
- Subject:
- Sociology, Law, Crime and Deviance, Comparative and Historical Sociology
This chapter explores the dynamics of the heroin market, as evident in its response to the Taliban opium cutback. It discusses the observed changes in the price and purity of opiates throughout the ...
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This chapter explores the dynamics of the heroin market, as evident in its response to the Taliban opium cutback. It discusses the observed changes in the price and purity of opiates throughout the market as outcomes of interactions between supply and demand. It analyses the issues of market power and segmentation, specifically in relation to the apparent effect of the Taliban ban. It provides evidence for short-run supply rigidity and consequent price increases, the potential for expansion in other regions and the cushioning effects of inventory.Less
This chapter explores the dynamics of the heroin market, as evident in its response to the Taliban opium cutback. It discusses the observed changes in the price and purity of opiates throughout the market as outcomes of interactions between supply and demand. It analyses the issues of market power and segmentation, specifically in relation to the apparent effect of the Taliban ban. It provides evidence for short-run supply rigidity and consequent price increases, the potential for expansion in other regions and the cushioning effects of inventory.