I have to disagree with you about the cigarettes. I read a thread a couple months ago about killings over black market cigarettes in NY City. I'll see if I can dig that up, but I don't recall the title.....
Yes, I thought about mentioning the increased restrictions on cigarettes that are pushing them ever-closer to a flourishing black market. This, again, proves the anti-prohibition case. There was a killing in New York over black market cigarettes. Not free market, black market. Why is there a black market in the first place? Because of government-imposed restrictions that push the price of legal cigarettes higher and higher, until it becomes profitable to operate a black market.
Black markets are inefficient, because there are added transaction costs involved with smuggling and illicit distribution... among other things. Weapons must be purchased and enforcers hired to defend one's turf against competitors. Law enforcement officials must be evaded or bribed. A black market cannot compete with a free market, but as governments impose transaction costs of their own, eventually the black market becomes profitable and we start seeing illegal dealers on our streets, killing their enemies and any innocents who get in the way, perverting our justice system, and imposing tremendous costs on society.