Legal Cannibis

[ZenMaster]

When pot becomes legal, do prices increase or decrease?

My theory is that prices will mostly stay the same - because current black market dealers will win all the business if legalized outlets charge too much. And legalized outlets are going to charge as much as they can, so they wont attempt to under cut the black market dealers by too much.

Thoughts?

 

[SEIndSAM]

What happened in Colorado & Washington???

 

[steveh_131]

This is entirely dependent upon the regulations that remain.

Free, open market? Prices will plummet. They have to. Someone is always willing to undercut the competition if there is sufficient supply.

If high taxes and artificial caps on production and distribution are put in place, prices will stay high and the black market and its associated crime will remain. This is what happened in Colorado.

 

[mrjarrell]

There's some truth to that but, as we have seen in Colorado, some prices do come down and the quality goes up immeasurably. The primary factor in the costs in states that have legalised it are taxes. These add no small amount to the cost and that's something that is missing from the black market pricing. For the higher quality strains the costs are about the same. As time goes by, though I expect that the prices will go down as production goes up and startup costs are paid off.

 

[ZenMaster]

What happened in Colorado & Washington???

The rule of this thread is you have to guess first - but after forming my hypothesis I looked up Colorado's prices....

 

[steveh_131]

There's some truth to that but, as we have seen in Colorado, some prices do come down and the quality goes up immeasurably. The primary factor in the costs in states that have legalised it are taxes. These add no small amount to the cost and that's something that is missing from the black market pricing. For the higher quality strains the costs are about the same. As time goes by, though I expect that the prices will go down as production goes up and startup costs are paid off.

Sure, it dropped some. But as long as production remains artificially capped we will never see realistic prices.

 

[steveh_131]

The rule of this thread is you have to guess first - but after forming my hypothesis I looked up Colorado's prices....

Don't mistake prices in a stifled market for free market prices.

 

[ZenMaster]

Don't mistake prices in a stifled market for free market prices.

True. And I dont have any idea what they were paying on the street before legalization. But wouldnt the street dealers affect legal outlets pricing, and visa versa?

 

[steveh_131]

True. And I dont have any idea what they were paying on the street before legalization. But wouldnt the street dealers affect legal outlets pricing, and visa versa?

Street dealers would disappear in an actual free market. They only exist because the government continues to meddle.

 

[ArmedProgrammer]

Street dealers would disappear in an actual free market. They only exist because the government continues to meddle.

That's "unlicensed pharmacist" to you, pal...

 

[steveh_131]

That's "unlicensed pharmacist" to you, pal...

True. The Licensed pharmacists are the real dangerous drug peddlers.

 

[Kutnupe14]

legal ganja, increase.... illegal (unregulated) ganja, decrease

 

[indiucky]

True. The Licensed pharmacists are the real dangerous drug peddlers.

Statistically speaking you are correct...

I can't remember what year the turn was made but I do believe prescription medications have overtaken illegal drugs in cases of over doses......Ironically enough this has happened after the rise of meth and a resurgence of heroin not seen since fashion models built like 12 year old boys attributed their 2 x 4 shapes to a nice heroin addiction....

 

[HoughMade]

Street dealers would disappear in an actual free market. They only exist because the government continues to meddle.

In a true free market, there may well be street dealers. Whose to say you have to buy weed in a store?

 

[Kutnupe14]

In a true free market, there may well be street dealers. Whose to say you have to buy weed in a store?

There 100% would, and they'd have better prices.

 

[Tydeeh22]

Depending on ones tolerance, if the store bought product was amazingly better, less required to get the job done. The costs would even out.

 

[steveh_131]

In a true free market, there may well be street dealers. Whose to say you have to buy weed in a store?

Come on now. He made a distinction between 'legal outlets' and 'street dealers'. He was obviously referring to the black market.

You can sell weed from your lemonade stand on the sidewalk without a permit as far as I'm concerned.

 

[HoughMade]

You're the one who brought the idea of a truly "free market" into this. in a truly free market, there couldn't be a black market.

 

[BugI02]

.....
I can't remember what year the turn was made but I do believe prescription medications have overtaken illegal drugs in cases of over doses......Ironically enough this has happened after the rise of meth and a resurgence of heroin not seen since fashion models built like 12 year old boys attributed their 2 x 4 shapes to a nice heroin addiction....

I was under the impression that the rise in heroin came about in part due to people becoming addicted to prescription painkillers and then having to turn to the original source drug when their avenues to presription versions were constrained

 

[BehindBlueI's]

Well, if it's legal do more people start to smoke who didn't before? Increase in demand, possibly?

Black market dealers are at a disadvantage. People will pay for safety and for convenience. Whatever the Wal-mart of pot ends up being, you can figure they won't occasionally rob their customers. Odds of shorting the customer or adulterated products will be lower. Chances of the product being ass-carried at some point in the supply line diminishes greatly. A "real" business will be easy to find even if you are a stranger to the area. Fixed business hours. All of that factors in to what people are willing to pay.

Sort of reminds me of a victim quote that went something like "if they sold crack on 96th St, I wouldn't have to drive to the 'hood."