Declining prices is good news

The Cannabist reports: How much have Colorado marijuana prices dropped in 2015?

Since last June, the average price of an 1/8th ounce of recreational cannabis has dropped from $50-$70 to $30-$45 currently; an ounce now sells for between $250 and $300 on average compared to $300-$400 last year. More competition and expansion of grow facilities contributed to this price decline, but it is also a natural result for any maturing industry as dispensaries try to find the market’s equilibrium price.

This is good news. I know that there are some of the drug poicy “academics” who always seem to want prices pushed artificially high as a deterrent, but that’s a ridiculous way to look at the market.

It was certainly natural to expect high prices at the beginning as the industry was getting set up; this drop is now a good indication of the development of a healthy competitive market. Lower prices also make the black market less attractive and reduce the sense that legal cannabis is some kind of “elite” experience.

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