The economic organization of drug gangs works much like any other business. They have a hierarchical structure with a leader or a group of leaders at the top, who make the major decisions and earn the most money. Below them are the middlemen who manage the day-to-day operations, and at the bottom are the street dealers who sell the drugs and take the most risk. The profits are distributed up the chain, with the majority going to the top. This structure allows the gang to operate efficiently and maximize profits.
Author Steven Levitt, working with journalist Stephen Dubner, shows how economic theories can be use...
View summary