A highly fascinating NPR piece discusses the various impacts of Colorado's recent legalization of marijuana for recreational use on the already semi-active market for medical marijuana and hazards a a few guesses about how a thriving weed market might function. Disclaiming that Colorado still must establish a "regulatory framework" before adults can just waltz into pot stores and start buying, the article nevertheless suggests that abundance of medical marijuana dispensers already thriving will help an already enlarging market explode. Even under just partial legalization, quality improved while prices fell--indicating that full legalization could increase supply even further while ratcheting up demand to the point that quantity rises dramatically and price falls. Of particular interest is "William Breather's" implication that consumers derive extra utility from going into shops and buying marijuana like they'd buy a new hat, rather than under more sketchy circumstances.
The article briefly describes the Reagan Administrations suffocating effect on the legalization movement before hypothesizing about the resolution's effect on the existing legal market for cigarettes. If cigarette companies do begin to integrate marijuana products, they could alter the entire landscape of the market as specific companies gain and lose revenue based on the popularity and pricing of their marijuana products. In addition, as Breathers points out, legalization could stimulate other markets by attracting visitors to the legalized zone.
