Template-type: ReDIF-Paper 1.0
Author-Name: Bahamazava, Katsiaryna  
Author-Email: katsiaryna.bahamazava@unito.it
Author-Name: Marchese, Carla  
Author-Email: carla.marchese@uniupo.it
Author-Name: Privileggi, Fabio
Author-Email: fabio.privileggi@unito.it
Author-Workplace-Name: University of Turin
Author-Workplace-Homepage: http://www.est.unito.it/
Title: A Cournot equilibrium between Dark Net Market and Street market
Abstract: This article contributes to the economic analysis of the illegal drug trade
on either the Street or the Dark Net Market (DNM). For the sake of sim-
plicity, it is assumed that there is a continuum of consumers with unitary
demand for one drug. Their demand price varies from one market to the
other according to the risks they bear in accessing it. The lower risk of vi-
olence in the DNM implies that, ceteris paribus, the good delivered there is
deemed higher quality. Vendors compete à la Cournot in quantity in their
“home” market, selling homogeneous goods. However, the other market ex-
erts a vertical competitive threat. The two markets are intertwined, and we
model the case in which both are simultaneously in equilibrium.
Length: pages 34
Creation-Date: 2023-02
File-URL: https://www.est.unito.it/do/home.pl/Download?doc=/allegati/wp2023dip/wp_02_2023.pdf
File-Format: Application/PDF
Handle: RePEc:uto:dipeco:202302