1. CANNABIS PRICES AND PREMIUMIZATION BEFORE
AND AFTER LEGALIZATION AND REGULATION:
Preliminary evidence from the California market
Robin Goldstein, Daniel Sumner & Alexandra Fafard
University of California Agricultural Issues Center
I’m calling this “immediately after” meaning less than half a year.

2. A NOTE ON TERMINOLOGY:
“Marijuana” vs.
“Cannabis”

3. Marijuana
Cannabis

4. Marijuana
Cannabis

5. Marijuana
Cannabis

6. Marijuana
Cannabis

7. We surveyed 3 products: 1oz flower, 1/8oz flower, and 500mg oil cartridge.

8. AIC Retail Price Survey: Oct 2016, before AUMA vote
Variable
Obs.
Mean ($)
Std Dev
Minimum
Maximum
RETAIL AND/OR DELIVERY
Retail (yes=1)
565
57%
0.50 1
Delivery (yes=1)
265
47%
RETAIL PRICE
1/8 oz dried flower
Low price
561
28.2
9.7
8.0
55.0
High price
54.5
16.4
13.0
125.0
1 oz dried flower
503
181.3
68.0
20.0
400.0
341.7
111.5
70.0
1000.0
0.5g Cartridge
327
30.3
7.8
10.0
328
41.5
13.1
15.0
120.0
RATING
Google Local 89
4.4
0.6
0.0
5.0
Yelp!
127
4.2
0.9
Weedmaps
556
4.7
0.4
Leafly
105
4.6

9. Prices correlate positively with THC levels

10. Prices correlate inversely with package size

11. Price distribution before the AUMA vote
Global
$35
Global
$50
Local
$25
Local
$70

12. Price distribution movements after the AUMA vote
Global
$20
New Local $60
Local
$75
Low-end mean = $27.34
Low-end change = -2.8%
High-end mean = $53.87 Price premium = 97.1%
High-end change = -1.1% Price premium change = +3.6%

13. Low-end 1/8 oz flower prices
Price distribution changes in the 4 months after CA Adult Use of Marijuana Act vote:
Low-end 1/8 oz flower prices
Movement of modal generic marijuana prices in AIC retail survey, November 2016-March 2017 (not quantity-adjusted), with 2 modal prices: the bottom modal price falls from $25 to $20, and the top modal price remaining stable at $35. (In all 3 charts above, X-axis is price, and Y-axis is frequency distribution.)

14. High-end 1/8 oz flower prices
Price distribution changes in the 4 months after CA Adult Use of Marijuana Act vote:
High-end 1/8 oz flower prices
Movement of modal premium marijuana prices in AIC retail survey, November 2016-March 2017 (not quantity-adjusted), with 2-3 modal prices: the bottom modal price remains stable at $50, the top modal price rises from $70 to $75, and a new third modal price arises at $60. (In all 3 charts above, X-axis is price, and Y-axis is frequency distribution.)

15. Price distribution changes in the 4 months after CA Adult Use of Marijuana Act vote:
High-end and low-end 1/8 oz flower prices

16. Average prices 2 months
before vs. 5 months after
CA cannabis regulations
took effect on Jan :
Full sample

17. Average prices 2 months
before vs. 5 months after
CA cannabis regulations
took effect on Jan :
Licensed vs. unlicensed
retailers

18. Many thanks to our team of AIC research assistants!
Robin Goldstein University of California Agricultural Issues Center
Correspondence:

19. May 2018

20. Sung from the perspective of a cannabis operator

21. Economists, yes, they rob I Sold I several licenses
Minutes after they took I
From my bottomless money pit
Sung from the perspective of a cannabis operator

22. But my hands were made strong
By the hand of the AIC
We look forward to this
equilibrium
Triumphantly

23. Won't you help to sing
These songs of freedom
From all the pesticides
Regulation’s on

24. Legalize yourselves from
mental slavery
None but our forms can
free our minds
Have no fear for the
California agencies
Just turn cannabis to wine

25. How long shall they squeeze
our profits
While we stand aside and look? Ooh…some say it's just a part of it
We've got to submit de books

26. Won't you help to sing
These songs of freedom
From all the pesticides?
Regulation’s on
Taxation’s on
Vacation’s gone
Guitar solo

27. Vaporize your irregularities
Sign de papers, pay de fees
Internalize the vocabularities
Call it cannabis, not weed

28. How long shall they eat our profits
While we stand aside and puff?
Some say it's just a part of it
We've got to fulfill de Gov

29. Won't you help to sing
These songs of freedom
From all the pesticides
Regulation’s on
All those pesticides
Taxation’s on
Songs of freedom.

30. Sung from the perspective of a cannabis operator