Heroin Control Policy Under the Theory of Rational Addiction Frank

Abstract

The theory of rational addiction suggests that demand for addictive goods is more sensitive to changes in the full cost of consuming those goods than has previously been believed. The theory thus suggests that an efficient method of reducing the consumption of an addictive good is to significantly increase its retail price, in the case of illicit goods by enforcing a so-called permanent law enforcement war which may involve the elimination of harm reduction strategies.