Marketplaces for contraband have existed for only about four years on the dark web, but they’ve made inroads fast. But in Paul’s model, the biggest risk-taker was the facilitator, and he was getting the biggest share of the profits, just as economic theory said he should. If what Paul told me was true, I wondered, could the dark web be creating a better functioning and more efficient drug market? What is the dark web and how does it work? Street dealers, who face the most risk of violence and arrest, aren’t compensated for it. After all, the market for drugs is notoriously inefficient. For taking on the most risk, the facilitator gets 60% of Paul’s profits.
He collects the package from there, splits it into smaller portions, and passes those on to street dealers for sale.
The student then takes it to a second location, often a convenience store where the facilitator has a relationship with the owner. The facilitator rents a carefully vetted Airbnb and arranges for a naive student to be there to sign for the package. Middle Earth Direct delivery? Have it your way.
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