Hail Mary of Crime: Evidence from an Asian Drug-Selling Gang
Fri, Nov 20, 2020
Time: 12:00-13:00, Nov. 24th, 2020 Tuesday
Venue:Tongji Building Block A Room 505
Speaker:Li Huailu, Assistant Professor, School of Economics Fudan University
Abstract:
We study a Singaporean drug-selling gang’s dataset and empirically find that the gang’s pushers purchased larger quantities of drugs during periods of enforcement shocks caused by enforcement activities targeting the gang’s drug supply chain. This counter-intuitive finding is explained by the fact that each pusher sets an internal profit target that he must hit regardless of the circumstances. Given that enforcement shocks increased the pusher’s cost of drugs, the pusher must compensate by purchasing more drugs to sell in order to reach his profit target.
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