Uncertainty and risk: A framework for understanding pricing in online drug markets

Munksgaard, Rasmus; Tzanetakis, Meropi

doi:10.1016/j.drugpo.2021.103535

Cited by 24 publications

(20 citation statements)

References 67 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…Paquet-Clouston and colleagues (2018) found that buyers “respond more to advertising than low prices.” The most popular vendors advertised aggressively, using multiple listings of the same type of drugs, in different quantities, and participated in discussion forums to improve their visibility. A recent article focusing on cryptomarket pricing by Munksgaard and Tzanetakis (2022) summarized the evidence as conflicting. Several other factors than reputation and status influence prices.…”

Section: Resultsmentioning

confidence: 99%

“…If a transaction is unsuccessful, the drugs never arrive, or are of an inferior quality, the buyer and sellers can discuss what went wrong in a dispute resolution system. Here, administrators act as a third party, and help resolve the situation (Munksgaard & Tzanetakis, 2022). Mediation has two connected components: the dispute resolution system and escrow.…”

Section: Resultsmentioning

confidence: 99%

“…Hardy and Norgaard (2016) note that this has become the norm, but Bhaskar and colleagues (2019) found that in the four cryptomarkets they examined, it was only rarely used. Surprisingly, no research has focused on the escrow systems (Munksgaard & Tzanetakis, 2022).…”

Section: Resultsmentioning

confidence: 99%

“…On legal platforms, sellers with high reputation scores command higher prices. However, recent research on cryptomarkets finds that this relationship does not hold for the illicit context (Munksgaard & Tzanetakis, 2022). The reliability of reputation scores in the illicit context should not be overestimated.…”

Section: Discussionmentioning

confidence: 99%

“…These are hierarchical mechanisms and defining features of cryptomarkets. Only limited research focuses on these aspects, despite their importance in reducing transactional uncertainty and stabilizing the platforms (Munksgaard & Tzanetakis, 2022). This is a centrally prescribed, formal enforcement mechanism.…”

Section: Cryptomarketsmentioning

confidence: 99%

See 4 more Smart Citations

Hybrid Governance in Online Drug Distribution

Møller

2022

Contemporary Drug Problems

View full text Add to dashboard Cite

A growing share of illicit drug dealing occurs on online platforms. Technological innovations, such as encryption and anonymous payments, have enabled new and more complex ways of organizing transactions. This conceptual essay advances the study of online drug dealing by describing how governance mechanisms from markets, networks, and hierarchies are combined to reduce transactional uncertainty. Based on published research, I argue that cryptomarkets and social media drug distribution prioritize prices, trust, and rules differently, and that this can be understood as hybrid governance. In cryptomarkets, networked reputation scores are important, but their reliability is interdependent of administrators’ sanctioning capacity. Similarly, the open advertisement of prices and products relies on the ability to expose fraudulent vendors. On social media, buyers prioritize easy access and fast delivery and characteristics of market governance, while hierarchical rules are absent, and networked reputations play only a small role. Existing typologies of drug dealing organization do not capture these combinations of governance mechanisms. Hybrid governance and the interdependence of several governance mechanisms better capture the empirical reality of new and emerging modes in online drug distribution.

show abstract

Section: Resultsmentioning

confidence: 99%

Section: Resultsmentioning

confidence: 99%

Section: Resultsmentioning

confidence: 99%

Section: Discussionmentioning

confidence: 99%

Section: Cryptomarketsmentioning

confidence: 99%

See 3 more Smart Citations

Hybrid Governance in Online Drug Distribution

Møller

2022

Contemporary Drug Problems

View full text Add to dashboard Cite

show abstract

Darknet: Inhalte, Erwerbsformen und Sicherheitsaspekte

Tzanetakis

2023

Suchtbehandlung Und Digitalisierung

View full text Add to dashboard Cite

Ranking Trust Factors Affecting Risk Perception in Illicit Drug Purchase on the Darknet: A Large-Scale Survey Study in Hungary

Kiss

Szigeti

2023

Eur J Crim Policy Res

View full text Add to dashboard Cite

The process of illicit drug trafficking on darknet markets is highly affected by various trust factors. Although the factors potentially affecting customers’ risk perception can be identified based on previous research, cyber criminology has not produced empirical research ranking the importance of the specific factors. This study was designed to fill this gap by developing a tool that measures the importance of the various trust factors. To test out the measurement tool, a large-scale survey with projective situational questions was conducted among university students in Hungary. The sample (n = 5481) was compiled to include potential darknet market customers, respondents with above-average computer skills needed to access the darknet, and taking into account that university students are a group of society particularly exposed to drug consumption. The end product of this research is a trust matrix ranking the factors affecting illicit drug purchases on darknet markets. Among the factors, the survey’s target group ranked reliable and undamaged delivery of goods and the reliability of vendors as the most important. The measurement tool developed in this research will facilitate further criminological research on vendor reputation. Its findings also point to the need for further research on delivery providers and predict that influencing the delivery-related risk perception of potential customers could effectively reduce demand.

show abstract

Uncertainty and risk: A framework for understanding pricing in online drug markets

Cited by 24 publications

References 67 publications

Hybrid Governance in Online Drug Distribution

Hybrid Governance in Online Drug Distribution

Darknet: Inhalte, Erwerbsformen und Sicherheitsaspekte

Ranking Trust Factors Affecting Risk Perception in Illicit Drug Purchase on the Darknet: A Large-Scale Survey Study in Hungary

Contact Info

Product

Resources

About