Price Discrimination On The Marijuana Market: Schwag Or Endo?
AbstractThis paper presents an example of price discrimination on the market for marijuana in the northern and western Czech Republic in 2006. It is based on a model of a multifirm market with emphasis on the existence of two types of firms and two qualities of a good. It is shown that in the case of a dealer of two qualities of marijuana there is an incentive to raise the price of the higher quality and reduce the price of the lower one. Price discrimination on the marijuana market is found in accordance with the predictions of the model and in the amount of about 50 CZK per gram.
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Bibliographic InfoArticle provided by Lucian Blaga University of Sibiu, Faculty of Economic Sciences in its journal Studies in Business and Economics.
Volume (Year): 8 (2013)
Issue (Month): 2 (August)
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Postal: Lucian Blaga University of Sibiu, Faculty of Economic Sciences Dumbravii Avenue, No.17, postal code 550324, Sibiu, Romania
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marijuana; vertical differentiation; price discrimination;
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