ABSTRACT
In this chapter, we consider the economics of cannabis use. Theoretical starting points include deterrence, routine activities theory, and rational choice. Key concepts explored include cannabis potency, accessing and differentiating cannabis markets, and cannabis as a consumer good. Emergent research focuses on the value of economic theories to understand regulatory difficulties within jurisdictions that have legalized cannabis and the general failure to dismantle and disrupt illicit markets. One question is how legal cannabis can compete with illegal markets without embracing commercial imperatives.
