The focus of this document is on how we can learn how narcotics traffickers set prices within the source and transit zones. When posing and answering this question, it is useful to first posit an economic model of drug markets and draw inferences from that model. To be useful, that model must be simple yet have implications that go beyond the trivial. The author then fills out the model by citing findings from studies done at his company. The author then shows how others have made significant contribution to understanding pricing behavior, but notes that a general review of the literature is beyond the scope of this paper. The author indicates that the studies he cites are illustrations, intended to show that well-crafted research can provide answers to questions about price setting. He closes with comments about why we do not know more about pricing behavior.