Originally posted by Effigy:
...Law enforcement effects the cost also. Do you think a cartel eats the loss when huge quantities get seized? We do.
No, most of the time the cartel (if that is the word you choose) absorbs these hits. The loss of 2-3 shipments over x period of time is factored in and is an expected cost of doing business. Now, if something changed and a very significant amount of shipments started to get popped then things might be different. However, even since the 9.11.01 terror attacks and the subsequent tightening of the border, prices in the southwest have not changed. Keep in mind: there are a LOT of smaller players in the drug smuggling business and there part in the overall picture is large.
The wholesale cost of cocaine has been lower now and throughout the 90's then prices in the earlier 80's.