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The World Heroin MarketCan Supply Be Cut?$
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Letizia Paoli, Victoria A. Greenfield, and Peter Reuter

Print publication date: 2009

Print ISBN-13: 9780195322996

Published to Oxford Scholarship Online: May 2012

DOI: 10.1093/acprof:oso/9780195322996.001.0001

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PRINTED FROM OXFORD SCHOLARSHIP ONLINE (oxford.universitypressscholarship.com). (c) Copyright Oxford University Press, 2022. All Rights Reserved. An individual user may print out a PDF of a single chapter of a monograph in OSO for personal use.date: 26 January 2022

Did the Taliban’s Ban Really Matter?

Did the Taliban’s Ban Really Matter?

(p.69) 4 Did the Taliban’s Ban Really Matter?
The World Heroin Market

Letizia Paoli

Victoria A. Greenfield

Peter Reuter

Oxford University Press

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.

Keywords:   heroin market, Taliban opium cutback, opiates, supply and demand, market power, market segmentation, price increases

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