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How profitable is methamphetamine dealing in Australia?

Wendy Gong1, Alison Ritter, David Bright

  • 1University of New South Wales, Sydney, Australia.

Drug and Alcohol Dependence
|November 1, 2011
PubMed
Summary
This summary is machine-generated.

Profitability in Australian methamphetamine dealing shows mark-ups ranging from 24% to 59%. This study analyzes drug dealing economics to aid law enforcement strategies against illicit markets.

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Area of Science:

  • Criminology
  • Economics
  • Drug Policy

Background:

  • The global illicit drug trade is a significant economic force, valued at approximately $320 billion USD.
  • Understanding the economics of illicit markets, particularly drug dealing, is crucial for effective control strategies.
  • The clandestine nature of illicit drug markets limits comprehensive economic analysis.

Purpose of the Study:

  • To investigate the profitability of non-crystal methamphetamine dealing in Australia.
  • To provide a clearer picture of the financial gains associated with illicit drug transactions.
  • To inform drug law enforcement by understanding dealer motivations and supply chain profitability.

Main Methods:

  • Analysis of data from judicial sentencing remarks, law enforcement informants, and published reports on methamphetamine prices in Australia.
  • Calculation of financial margins using a power law model to determine the relationship between prices and quantities in drug deals.
  • Estimation of mark-ups based on the assumed number of times a single deal is divided before reaching the end consumer.

Main Results:

  • Estimated mark-ups for methamphetamine dealing in Australia range from 24% to 59%, depending on the number of dilutions (cuts).
  • These mark-ups are comparable to those observed in the United Kingdom but appear lower than figures reported in United States research.
  • The study highlights the potential for significant financial gains within the methamphetamine supply chain.

Conclusions:

  • This research represents the first analysis of methamphetamine dealing profitability in Australia.
  • Findings offer insights into the economic drivers motivating drug dealers.
  • The study's results can assist law enforcement agencies in developing targeted strategies to disrupt profitable drug supply chains.