Marijuana Market Thalia Santacruz Nick Dandridge Amanda Tucker.

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Presentation transcript:

Marijuana Market Thalia Santacruz Nick Dandridge Amanda Tucker

Marijuana Market: A Commodity Legal recreational use: A public good  21 and older  rivalrous  Illegal market use:  A private good  Anyone  rivalrous

Type of Market: Illegal Illegal Market: Perfect Competition  same good, no barriers to entry o Rivalrous o Excludable o Private Good

Type of Market: Medical & Legal Medical Market: Monopoly  high Barriers to entry; products are standardized o Private Good Legal Recreational Market: Perfect Competition  Low barriers to entry[over the age of 18 to buy, easy to obtain vendor’s permit]; standardized good o Excludable goods o Rivalrous

Type of Market: Legal Legal Recreational Market: Perfect Competition  Low barriers to entry[over the age of 18 to buy, easy to obtain vendor’s permit]; standardized good o Excludable goods o Rivalrous

Marijuana in the Legal Market Competitors: Other vendors, illegal market Strengths: o Protected by government o Justified use (used in public) o Can provide large portions at once with no hassle Weakness: o Taxation o Marijuana is more expensive o More requirements in order to purchase o Cannot purchase as wanted, only as prescribed

Marijuana in the Illegal Market Competitors: Drug dealers, legal market Strengths: o Cheaper o More personalized o Easier to purchase due to no age limit Weakness: o FEDs are watching o Not personalized

Illegal Market Substitutes: Tobacco products, acid/lsd, xan’s, alcohol, mushrooms, vivanz Complements: Food and alcohol Providers: Drug dealers

Legal/Medical Market Medical Substitutes: Chemo, surgery, antidepressant, pain killers, sleeping pills, protein pills, nausea medicine Legal Substitutes: Pain killers, tobacco products Complements: Food and sleep Medical Providers : Pharmaceutical stores certified by FDA Legal Providers: Vendors certified by FDA

Who are the customers? Legal: Age 21 + Strength: gain appetite, relaxation Weaknesses: short-term/ long-term effects, pay more for product altered senses (seeing brighter color) Change in mood Impaired memory Breathing problems Chance of heart attack Brain development Illegal: Anyone (13 + ) Strengths: gain appetite, relaxation, easy to obtain, more options Weaknesses: jail time, accelerated heart beat, short/long-term effects

Who are the customers? Medical: Medical issued patients Cancer, glaucoma, hiv/aids, seizures, chronic pain, multiple sclerosis… o Strengths: gives strength to bodies system, gain appetite, relaxation, more blood/ more oxygen o Weaknesses: pay more for product, limited access to product, not standardized, short/long-term effects

Who are the suppliers? Medical: Medical users, nurseries, government approved dispensaries Strengths: revenue, helping with patients conditions, stronger potency Weaknesses: location Legal: family/ locally owned, dispensaries Strengths: get permit, revenue Weaknesses: location, hours of operation

Who are the suppliers? Illegal: infinite number of suppliers; drug dealer/ “the plug” Strengths: accessibility, familiarity Weaknesses: competitors prices, jail time

Role of government in market Legal Recreational: Taxation, depends on state laws Externalities: less crime (positive) Medical: Medical cards, prescriptions (barriers to entry), taxation, FDA, mandatory doctors visits and notes. Externalities: family member of patient (positive) Illegal: Drug busts, drug trafficking law, law enforcement agencies, DEA Externalities: accomplices (negative)

Pictures coming soon…..