Illicit drug prices and quantity discounts: A comparison between a cryptomarket, social media, and police data

Hybrid drug dealing: Merging on- and offline spheres when dealing drugs via social media

BACKGROUND

Research exploring online mediated drug dealing has gained momentum in recent years. Much existing research is characterized by a primary focus on the "online" aspects of drug sales facilitated by social media, resulting in a divide between "on"- and "offline" drug dealing. We wish to bridge this gap, by focusing on the hybridity of dealing drugs via social media and by arguing for a more holistic understanding of contemporary drug dealing.

METHODS

This article is based on in-depth digitally facilitated oral interviews with 25 individuals with experience of dealing drugs via social media platforms and encrypted messaging apps and on observational data from different apps and platforms.

RESULTS

We found that many sellers start by dealing offline and gradually drift into sales using social media technology. While the internet offers drug sellers new opportunities to expand their business, many sellers are not technological exclusionists but rather adopt a multichannel approach where they sell both via social media and occasionally or regularly also through in-person and technologically analogue means. Additionally, many sellers do not draw clear cut distinctions between whether they use social media, SMS or encrypted apps, but rather see their "drug sales phone" as one medium for all sales related communication. Findings also show that local offline power dynamics continue to influence sellers' ability to build and expand their online business, and that offline as well as online networks play a crucial role in sellers' hiring of helpers and in their bulk drug sourcing.

CONCLUSION

We discuss how our findings have analytical, conceptual, and methodological implications for the development of a more nuanced and holistic approach in the study of drug sales involving online technologies.

Understanding and preventing the advertisement and sale of illicit drugs to young people through social media: A multidisciplinary scoping review

ISSUES

The sale of illicit drugs online has expanded to mainstream social media apps. These platforms provide access to a wide audience, especially children and adolescents. Research is in its infancy and scattered due to the multidisciplinary aspects of the phenomena.

APPROACH

We present a multidisciplinary systematic scoping review on the advertisement and sale of illicit drugs to young people. Peer-reviewed studies written in English, Spanish and French were searched for the period 2015 to 2022. We extracted data on users, drugs studied, rate of posts, terminology used and study methodology.

KEY FINDINGS

A total of 56 peer-reviewed papers were included. The analysis of these highlights the variety of drugs advertised and platforms used to do so. Various methodological designs were considered. Approaches to detecting illicit content were the focus of many studies as algorithms move from detecting drug-related keywords to drug selling behaviour. We found that on average, for the studies reviewed, 13 in 100 social media posts advertise illicit drugs. However, popular platforms used by adolescents are rarely studied.

IMPLICATIONS

Promotional content is increasing in sophistication to appeal to young people, shifting towards healthy, glamourous and seemingly legal depictions of drugs. Greater inter-disciplinary collaboration between computational and qualitative approaches are needed to comprehensively study the sale and advertisement of illegal drugs on social media across different platforms. This requires coordinated action from researchers, policy makers and service providers.

Optimizing Digital Tools for the Field of Substance Use and Substance Use Disorders: Backcasting Exercise

BACKGROUND

Substance use trends are complex; they often rapidly evolve and necessitate an intersectional approach in research, service, and policy making. Current and emerging digital tools related to substance use are promising but also create a range of challenges and opportunities.

OBJECTIVE

This paper reports on a backcasting exercise aimed at the development of a roadmap that identifies values, challenges, facilitators, and milestones to achieve optimal use of digital tools in the substance use field by 2030.

METHODS

A backcasting exercise method was adopted, wherein the core elements are identifying key values, challenges, facilitators, milestones, cornerstones and a current, desired, and future scenario. A structured approach was used by means of (1) an Open Science Framework page as a web-based collaborative working space and (2) key stakeholders' collaborative engagement during the 2022 Lisbon Addiction Conference.

RESULTS

The identified key values were digital rights, evidence-based tools, user-friendliness, accessibility and availability, and person-centeredness. The key challenges identified were ethical funding, regulations, commercialization, best practice models, digital literacy, and access or reach. The key facilitators identified were scientific research, interoperable infrastructure and a culture of innovation, expertise, ethical funding, user-friendly designs, and digital rights and regulations. A range of milestones were identified. The overarching identified cornerstones consisted of creating ethical frameworks, increasing access to digital tools, and continuous trend analysis.

CONCLUSIONS

The use of digital tools in the field of substance use is linked to a range of risks and opportunities that need to be managed. The current trajectories of the use of such tools are heavily influenced by large multinational for-profit companies with relatively little involvement of key stakeholders such as people who use drugs, service providers, and researchers. The current funding models are problematic and lack the necessary flexibility associated with best practice business approaches such as lean and agile principles to design and execute customer discovery methods. Accessibility and availability, digital rights, user-friendly design, and person-focused approaches should be at the forefront in the further development of digital tools. Global legislative and technical infrastructures by means of a global action plan and strategy are necessary and should include ethical frameworks, accessibility of digital tools for substance use, and continuous trend analysis as cornerstones.

Prices of flower and resin in cannabis social clubs: Analyses of register data from 220,000 collections

INTRODUCTION

Cannabis social clubs (CSC) are community-based non-profit organisations that aim to minimise cannabis-related harm for their members. This contribution seeks to: (i) compare the cost of cannabis flower and resin in CSCs to the national average retail price on the illegal market; and (ii) identify possible quantity discounts for cannabis flower and resin distributed to members of CSCs.

METHODS

Routine data from four CSCs located in Barcelona, Spain, contained information on n = 220,465 collections of cannabis resin and flower (0.01-39 g per collection). The costs for 1 g of cannabis flower and resin per collection were determined. The mean national prices on illicit cannabis were obtained from Spanish police reports.

RESULTS

On average, members paid 6.19€ for 1 g flower (median: 6€; interquartile range: 6-7€) and 8.54€ for 1 g resin (median: 7€; interquartile range: 6-9€), with less variations for flower than for resin. Compared to the national average, prices appeared to be higher for cannabis products distributed in CSCs, but comparisons were limited by a lack of data on the variation of national prices. For resin, doubling the quantity was associated with a 20.7% (95% confidence interval 20.4-21.2%; p < 0.001) fee discount.

DISCUSSION AND CONCLUSIONS

Cannabis in CSCs may be more costly than the estimated national average for the illicit market. No meaningful price discount could be observed for flower but for resin. Pricing policies pursued by CSCs may help to disincentivise consumption of larger amounts but may also bar socioeconomically disadvantaged users from accessing safer alternatives than the illegal market.

#Sponseredathlete: the marketing of image and performance enhancing drugs on Facebook and Instagram

This article sets out to investigate the marketing of image and performance enhancing drugs (IPEDs) on the social media platforms Facebook and Instagram. Drawing upon a 'connective' ethnographic exploration of IPED use and supply, the paper first outlines a supplier typology on these platforms, before shedding light on the marketing strategies employed by sellers in order to overcome the inherent distrust of online sales and build a trustworthy brand. Techniques identified include athlete sponsorship, the sharing of bodybuilding fitspiration content, self-objectification, posting images showcasing transformation photos and customer feedback, and seasonal sales and promotions. Analysis encompasses the centrality of product branding, the overlaps between licit and illicit market advertising strategies, and the affordances of the platforms under study. Finally, conclusions relating to the implications of these findings to scholarship, policy, and regulation are offered.

Potential Influences of the Darknet on Illicit Drug Diffusion

Purpose of Review

Darknet-hosted drug markets (‘cryptomarkets’) are an established model of illicit drug distribution which makes use of specialised online hosting and payment systems to link buyers and sellers remotely. Cryptomarkets appear to professionalise, gentrify and integrate drug markets. Therefore, they can be hypothesised to have effects on drug availability by allowing purchases by people who use drugs (PWUD) outside of face-to-face networks that have typified drug distribution. They may attract new buyers and may change use patterns by offering a greater range of higher-potency drugs. This paper examines the research on cryptomarkets’ potential impacts on drug availability.

Recent Findings

1. Cryptomarkets tend to address established PWUD who mainly already have access to existing distribution systems. Their greatest impact may be on what is available and the quantities available, and not the overall ease of access.

2. Cryptomarkets may provide new data sources which can inform our understanding of drug markets.

3. Cryptomarkets may define PWUD as consumers and contribute to reshaping their identities around principles of self-directed, informed consumption.

4. In terms of size, cryptomarkets are currently smaller than other modes of digital drug distribution such as through social media and messaging apps and should be seen as a specialist subset of that genre.

5. Users of cryptomarkets often integrate drug-purchase and consumption repertoires across multiple sites, online and offline, and cryptomarkets can be one element.

Summary

The cryptomarkets are of interest partly because they alter the practical calculus around drug diffusion and partly because they contribute to the formation of digitally enabled drug use which emphasises a consumer relationship between buyer and seller.

How much demand for money laundering services does drug selling create? Identifying the key parameters

BACKGROUND

The illegal drug trade is often, and plausibly, asserted to be the largest illegal market, globally and in many individual countries. It is also claimed that a large share of its revenues is laundered, though there are no estimates of that volume. We provide rough estimates of that proportion and its primary determinants.

METHODS AND DATA

This paper presents a model of a multi-tiered drug distribution network that is parameterized with data based on one typical, well-studied case, namely British Colombia's market for illegal opioids, supplemented by a corresponding economic interpretation of what determines the share of drug trade revenues that need to be laundered. Sensitivity with respect to key parameters is analyzed.

FINDINGS

We suggest that less than half and perhaps no more than a quarter of revenues from established drug markets need laundering. Key parameters governing this proportion include the price mark-up across distribution levels, transaction volumes at each market level, and the capacity of market participants to spend cash on daily living expenses.

CONCLUSION

This model permits estimation of the scale of money laundering associated with a particular drug market. It suggests that there are limits on money laundering controls as a way of reducing drug supply - although money laundering investigations may still be an effective way to identify and investigate high-level drug traffickers.

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

BACKGROUND

The pricing of illicit drugs is typically approached within the risks and prices framework. Recent sociological and economic studies of prices in online drug markets have stressed the centrality of reputation for price formation. In this paper, we propose an account of price formation that is based on the risks and prices framework, but also incorporates internal social organization to explain price variation. We assess the model empirically, and extend the current empirical literature by including payment methods and informal ranking as influences on drug pricing.

METHODS

We apply our model to estimate the prices of cannabis, cocaine, and heroin in two online drug markets, cryptomarkets (n = 92.246). Using multilevel linear regression, we assess the influence of product qualities, reputation, payment methods, and informal ranking on price formation.

RESULTS

We observe extensive quantity discounts varying across substances and countries, and find premia and discounts associated with product qualities. We find evidence of payment method price adjustment, but contrary to expectation we observe conflicting evidence concerning reputation and status. We assess the robustness of our findings concerning reputation by comparing our model to previous approaches and alternative specifications.

CONCLUSION

We contribute to an emerging economic sociological approach to the study illicit markets by developing an account of price formation that incorporates cybercrime scholarship and the risks and prices framework. We find that prices in online drug markets reflect both external institutional constraint and internal social processes that reduce uncertainty.