Abstract

This exploration into the multiple effects of medical marijuana laws on regional marketplaces uses a novel data set and contributes three unique and important findings. First, in states with medical marijuana legislation the price of marijuana is significantly lower than states without similar legislation, this is likely due to measures that allow for legalized avenues of production and distribution. Secondly, because of price breaks for bulk purchases, retail level distributers operate on a downward sloping supply curve that is less steep in medical marijuana states; this is likely due to decreased risk of distribution which may reduce preference for lower margin, higher volume transactions. Finally, in states with medical marijuana laws, variance in purchase price is substantially less, presumably due to the decreased cost of information seeking and decreased risk of advertisement.

First Advisor

Matt Warning

Second Advisor

David Lewis

Date of Completion

Fall 12-10-2012

Degree Type

Thesis

Format

PDF

URI

http://soundideas.pugetsound.edu/economics_theses/94

Language

English

Department

Economics