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The cannabis social market

Author

Listed:
  • Marco Rossi

    (Università Sapienza di Roma - Dipartimento di Scienze Sociali ed Economiche)

Abstract

Here, we define the market where the traders are friends, and the transactions are minimally commercially oriented, as the “cannabis social market†. In order to define the cannabis “social market†, we add the study of the cannabis “social demand†to what has been already defined in the literature as “social supply†(Hough et al. 2003). We think that the study of the demand side is very important because in this market it looks like that trading is demand-driven, more than profit-oriented. Actually, the main (alleged) motivation for selling cannabis to a friend is to satisfy his need (“to help out a friend†), more than to gain a monetary profit. In the cannabis social market, the short side of the market is the demand side, that is the quantity traded is the quantity demanded by consumers. Instead, street dealers supply is profit-oriented, therefore the street dealers’ commercial attitude is more aggressive: they are named “pushers†because they try to motivate potential buyers. Therefore, in the street dealer market, trading is more supply-driven than it is in the cannabis social market. In other terms, cannabis trading in the social market is like having sex with friends, while buying cannabis by street dealers is like having sex with a prostitute.

Suggested Citation

  • Marco Rossi, 2020. "The cannabis social market," Public Finance Research Papers 43, Istituto di Economia e Finanza, DSGE, Sapienza University of Rome.
    • Handle: RePEc:gfe:pfrp00:00043
    as

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    File URL: https://www.dsge.uniroma1.it/sites/default/files/pubblicazioni/economia/e-pfrp43.pdf
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    References listed on IDEAS

    as
    1. Alchian, Armen A & Demsetz, Harold, 1972. "Production , Information Costs, and Economic Organization," American Economic Review, American Economic Association, vol. 62(5), pages 777-795, December.
    2. Charles M. Tiebout, 1956. "A Pure Theory of Local Expenditures," Journal of Political Economy, University of Chicago Press, vol. 64(5), pages 416-416.
    3. Marco Rossi, 2013. "Alcune implicazioni fiscali di scenari alternativi alla proibizione della cannabis," Rivista di Politica Economica, SIPI Spa, issue 1, pages 371-401, January-M.
    4. Marco Rossi, 2019. "On Aging Cannabis Users: a Welfare Economics Analysis," Working Papers 11/19, Sapienza University of Rome, DISS.
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    More about this item

    Keywords

    cannabis; social networks; social supply; social capital;
    All these keywords.

    JEL classification:

    • D40 - Microeconomics - - Market Structure, Pricing, and Design - - - General
    • D61 - Microeconomics - - Welfare Economics - - - Allocative Efficiency; Cost-Benefit Analysis
    • D62 - Microeconomics - - Welfare Economics - - - Externalities
    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making
    • K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law

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