Cannabis Legalization: Dealing with the Black Market

Abstract

This paper discusses how states that have legalized the recreational use of cannabis are struggling to subdue the black market. One of the goals of legalization was to defeat the black market and create a safer legal market for cannabis products. However, the black market still persists today, and in many states, it is actually dominating the legal market. This paper analyzes several reasons why consumers choose the black market, and it discusses several advantages black-market producers have over the legal market. Finally, this paper offers several possible solutions to this problem, such as working with the black market and decreasing barriers to entry in the legal market.

Keywords: black market, marijuana, cannabis, legalization, barriers to entry, regulation, recreational