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I'm not seeing why this would particularly reduce violence. Some gang violence isn't about drug sales, but the same sort of territorial control that nation-states like to fight over too. And for the violence that is about drug sales, I'm not seeing why that wouldn't continue. Dead drops are just as local as corners are, and there's just as much incentive to fight over business as there was previously.

In the current system, you have to have dealers hanging out on the corners. To take territory, you shoot at the dealers and either kill them or scare them away.

In this system, you have drops. How does a rival gang know where they are? They'd have to buy the product to discover the drop and drops shouldn't be used multiple times. They could watch a user find one, but then that drop wouldn't be used again so they couldn't stake out and wait for their rival to refill it.

It's not clear to me how much gang violence is specifically driven by fights over corners, rather than other kinds of inter-gang fighting. But let's assume it's significant.

I think it's very unlikely a drug business can get to scale without reusing drops; the cost of scouting a good drop is significant, and the number is finite. Regardless, the value of a drop declines the farther it is from customers and from the dealers who supply the drop. So in practice, gangs will still have an incentive to claim turf and to harm other dealers using drops on their turf.

Even if that somehow doesn't happen, they'll still have the same strong competitive incentives. So they'll be very much inclined, as now, to discover rivals and take over their business through violence.

If gangs are claiming turf and excluding other dealers, then those aren't dead drops, which by definition are undetected drops by anonymous parties. It's an open question whether effective dead drops are even possible, but if they are, and come to be widely adopted for trade in contraband, then a significant portion of the source of territorial conflicts between criminal organizations vanishes.

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