Underground markets result from a combination of enforcement standards that are too low and too many operating rules for a given level of commercial activity.
In Communist Hungary, underground markets flourished and were an important source of goods and services that could not have been obtained otherwise.
The demand function externalities consisted of offshore markets having too high standards and/or too few rules for a given level of commerce and underground markets having too low standards and/or too many rules for a given level of commerce.
Rather, they serve as GAAMA incentives to direct the order flow to controlled, offshore, balkanized, or underground market that is the low-cost point of sale.
As with the earlier anti-cocaine campaign on the West Side, the ultimate effect of the crackdown was a shift of the center of operations for the underground markets. Now, the drug trade moved further south, into Chicago's Black Belt.
The old legal market gradually faded away, the victim of informal pressure and formal legal restrictions, and was slowly replaced by an underground market bearing most of the characteristic features of the contemporary illicit drug trade.
We'll continue our market impacts and analysis in the February issue with our exclusive, in-depth Sewer & Water Municipal Survey and a look at what underground markets
may face in 2006 from the federal regulatory arena.
This association serves the sewer rehabilitation market, but its lessons are very much applicable to all underground markets
Further encouraging to the underground markets
are telecommunication analyses and reports taking issue with the "America is overbuilt" theory.
We will continue to see changes in the underground market
as companies struggle to find the right formula for growth and a healthy bottom line.