SQUEALER DEALERS: THE MARKET FOR INFORMATION IN FEDERAL DRUG TRAFFICKING PROSECUTIONS

Andrew W. Nutting

Economic Inquiry, 2015, vol. 53, issue 1, 486-507

Abstract: Federal data on drug trafficking sentences are used to determine factors that affect market quantities of providing information against other defendants (i.e., defendant probabilities of receiving testimony‐related sentence reductions) and market prices of information (i.e., the sizes of such sentence reductions). Women and better‐educated defendants experience high demand (higher quantities and prices) for information. Blacks, Hispanics, and non‐U.S. citizens experience low demand. Defendants expecting longer sentences have higher supply of information. Conditional on expected sentence, crack dealers, high‐level dealers, and dealers with long criminal histories experience low demand, while low‐level dealers experience high demand. Women of all races experience high demand for information. (JEL K14, J15, J16)

Date: 2015
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