Why there is weeding out dealers

News Corp is a global, diversified media and information services company focused on creating and distributing authoritative and engaging content and other products and services. Dow Jones. By Ilan Brat and Timothy Aeppel. To Read the Full Story. Subscribe Sign In. For example, it could be set around or slightly below the current illegal price.

This will attract current users of the drug away from their existing dealers. But if nothing else is done, this will not be enough to eradicate the black market. Dealers will simply lower their prices to attract customers back. They are able to do this because there is currently a high markup in the illegal market.

This is up to three times as high as production costs based on evidence from the US market. The increased competition that the legal market would bring would likely substantially increase consumption — not something most policy makers want.

So as well as implementing a legal market, there needs to be a mix of policies to control consumption, including sanctions that are enforced against illegal activities.

This would allow a government to price out dealers, while keeping the price of legal cannabis relatively high. The reasoning is simple: if production or distribution costs of illegal cannabis increase, it is easier to drive criminals out of business by selling legal cannabis. Please note that you are leaving the website of CESifo GmbH and will be redirected to our partner ifo. Sie verlassen nun die ifo Website und werden auf unsere externe Recruiting Plattform weitergeleitet.

Working Paper. Bridgeport is in the Southwest zone, which already has two dispensaries, and is set to get five more. That dealer, who asked the Tribune not to be identified, is getting anxious about the shrinking income. The dealer was preparing four orders, sifting marijuana back and forth in a colander. The loose leaves fell away from buds and into a silver bowl below. This story was featured in our Daywatch newsletter. Sign up here to start your day with our top stories. It was also featured in our smart speaker briefing.

Twitter AllyMarotti. Skip to content. A dealer prepares marijuana for customer orders July 31, Even after Illinois legalizes recreational weed Jan. Map: Where to buy legal weed in Chicago and across Illinois ». A pot dealer keeps track of customer orders for marijuana, July 31, Some customers may stick with their dealers even after recreational weed is legalized in Illinois. Legal weed is just days away.