Question

What are the public policies toward this industry/market? In your opinion, are they appropriate or inappropriate? Are there other policies in relation to oligopolies that should be implemented?

Answer 1

Answer: -

Public policies:

The issue of regulation is important. On the supply side, quality and safety need to be assured. Labeling needs to be accurate. For marijuana, we are not only talking about a smokable plant but also products like ice cream, candies, brownies and lozenges.

Colorado and Washington have been wrestling with the size of a sales tax. Too high and you could get a black market. Too low, and not enough revenue.

Because market structures create incentives for sellers and buyers, legislators can shape the impact of legalized marijuana.