- Despite the arrest of cartel leaders, drug prices have remained stable, suggesting that these criminal organizations have developed mechanisms to sustain their operations and prices.
- The resilience of drug trafficking networks is compared to corporate structures, where leadership changes do not significantly disrupt overall operations.
- Drug cartels often have redundancy and succession planning in place, allowing them to quickly replace arrested leaders and maintain their supply chains.
- The economics of drug trafficking demonstrate that these networks, much like legitimate businesses, can withstand shocks and continue to function effectively.
- This phenomenon challenges the conventional economic assumption that disrupting the leadership of a firm or organization will directly impact its market prices and operations.
- The structure and adaptability of cartels highlight the complexity and sophistication of these illegal networks in maintaining market equilibrium despite external pressures.
- Understanding the corporate-like resilience of cartels can inform more effective strategies and policies for combating drug trafficking and its economic impact.
Source: https://www.foxnews.com/politics/kingpins-fall-prices-dont-how-cartels-defy-rules-economics)
