Rahul Iyer

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You would not assume the risks of an illegal transaction (being arrested or fined, for instance) unless you stood to save a lot of money. This isn’t the case for most illegal markets, however: the seller charges a markup because she is hawking something that’s either hard to find (exotic animals or obscure currencies) or restricted (guns, sex, or drugs) in the mainstream market.
An Economist Walks Into a Brothel: And Other Unexpected Places to Understand Risk
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