[lbo-talk] Meth and Monopoly

[Yoshie Furuhashi]

> On 1/25/06, Yoshie Furuhashi <furuhashi.1 at osu.edu> wrote:
> > Where there arises monopoly among those who commit crimes, it seems
> > to me that the state helps create it, by putting petty competitors
> > out of business.
>
> this is one of those cases -- ignored by the econ. textbooks, natch  
> -- in which monopoly can be better than a competitive market. After  
> all, monopoly prices discourage people from using meth.
> --
> Jim Devine

According to standard economics, once prices go up too much, then the  
demand goes down, bringing down the prices  eventually.  Is there an  
equilibrium price in the drug market?

Yoshie Furuhashi
<http://montages.blogspot.com>
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