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We present a case study of the market of drug dealing in the context of a drug producing country. A main characteristic of a drug producing country is that illegal drugs are more accessible and have dramatically lower prices in the street market compared to countries that do not produce drugs. We locate our study to the city of Bucaramanga, Colombia; the country with the largest production of cocaine in the world. We make use of two sources of primary information i direct interviews to drug dealers, and ii media analysis of the local newspaper. Our main finding is that individual dealers exchange drugs, without any incentives to integrate and take control of the distribution in the city. That is, the low prices of drugs reduce profit and deter dealers to fight for monopoly, leading to a decentralized market of multiple uni-personal firms who use no violence. Becker, G. Journal of Political Economy,76 2 , Journal of Political Economy, 96 4 , Eisenhardt, K. The Academy of Management Review, 14 4 , Fontana, A. Denzin Ed. Thousand Oaks: Sage Publications. Journal of Drug Issues, 35 1 , Garoupa, N. Journal of Economic Surveys, 11 3 , Serie Documentos de Trabajo, Universidad de Rosrio, Levitt, S. Quarterly Journal of Economics, 3 , — MIT Press. Milgrom, P. The Canadian Journal of Economics, 21 3 , Polinsky, M. Journal of Economic Literature, 38 1 , Reuter, P. Santa Monica, CA. Skott, P. Journal of Economic Behavior Organization, 48 4 , World p. Venkatesh, S. Harvard University Press. Williamson, O. The American Economic Review, 63 2 , — The American Economic Review, 73 4 , Administrative science quarterly, 36 2 , Cornell University, Johnson Graduate School. Contact us: mpra ub. This repository has been built using EPrints software. All papers reproduced by permission. Reproduction and distribution subject to the approval of the copyright owners. View Item. Atom RSS 1. Coase, R. The Journal of Law and Economics, 3 1 , 1. Frey, B. Economic Policy 12, Roemer, A. Mexico: Limusa.