Diminishing returns and great potential: a comment on Pollack's & Reuter's review on tougher drug enforcement and prices.

The author discusses the article by Peter Reuter and Harold Pollack on the relationship between drug prices and enforcement intensity. He mentions that the empirical evidence speaks just to the failures of the past practice of enforcement, and enforcement has not optimized in producing the maximal effect on prices. He states that law enforcement does not frequently think in terms of maximization of social welfare or efficient production with respect to prices or objective function.