Widespread legalisation will drop the price of bud to the basement. ATM prices are high because a grey/black market is under the control of a relatively small number of sellers and customers have little choice but to buy at the sellers asking price.

In a legal marketplace the number of sellers increases and balance of power shifts to favour the buyer because they have more opportunity to compare the products of different sellers and then choose where to spend their money. Price cutting is one of the results of sellers having to do something to entice buyers to choose their products over that of a competitor.

The pro buyer effect of competition isn't static, as the price for cannabis products drops, less efficient sellers will leave the marketplace while others will merge into larger organisations that can still turn a profit by utilising economies of scale. Eventually the competitive market will transform into an oligopoly, where most of the bulk of product comes from a few very large sellers with independent producers relegated to peripheral or niche markets where economies of scale have less impact.

Anybody dreaming of being a weed baron once it's legal will need to factor market effects into the equation.
sarah louise Reviewed by sarah louise on . Good commercial type area to grow? HI all, living in California here, we currently have a medicinal marijuana law that allows cultivation of a few plants. There is a proposition on the ballot likely for this coming year, which would completely legalize marijuana in Cali (no stops). I was just doing a bit of thinking, and decided to brainstorm a bit here, but say if one wanted to go into serious commercial growing, not worrying about legalities (assuming the prop passes), what would be the best area to grow commercially? Rating: 5