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As Americasdigest the news of another gun atrocity, a mall shooting in Nebraska onDecember 5th, they cannot be blamed for thinking that guns are in too readysupply. But an article in the latest Economic Journal suggests that the demandfor illegal guns, at least, is not met as easily as people might fear. SudhirVenkatesh, now of Columbia University, has talked to 132 gang-members, 77prostitutes, 116 gun-owning youths, 23 gun-dealers and numerous other denizensof Chicagos Grand Boulevard and Washington Park neighbourhoods. He did not findmany satisfied customers.
Chicago hasunusually tough restrictions on legal handguns. Even so the black market issurprisingly thin , attracting relatively few buyers and sellers.The authors reckon that the 48,000 residents of the two neighbourhoods buyperhaps 1,400 guns a year, compared with at least 200,000 cocaine purchases.Underground brokers sell guns for $150-350, a mark-up of perhaps 200% over thelegal price. They also demand a fee of $30-50 for orchestrating the deal. Eventhen, 30-40% of the transactions fall through because the seller cannot securea gun, gets cold feet or cannot agree on a location for the deal.
Buyers alsofind it hard to verify the quality of the merchandise. They often know littleabout the weapons they covet. Tony , who owns a .38 calibre handgun,learnt how to use his weapon by fiddling with it. He even put a stone in it. Did it fire? Mr Venkatesh asked. Im not sure. I think it did, Tony said.
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