Sunday, November 04, 2012

Legalization of Pot

The Rand organization analysis of legalization of pot is here. The Economist analysis is here. When pot becomes legalized, demand will increase but supply will increase by more. The price of marijuana will fall by 80% as the market succumbs to Bertrand pricing. As society's attitudes towards drugs changes, more and more states may legalize pot and the race to the bottom will continue.

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