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Using CNN’s High Profits to Examine the Economics of Marijuana Legalization

Using CNN’s High Profits to Examine the Economics of Marijuana Legalization

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Using CNN’s High Profits to Examine the Economics of Marijuana Legalization

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Presentation Transcript

  1. Using CNN’s High Profits to Examine the Economics of Marijuana Legalization James R. Bruehler, Eastern Illinois Univ Linda S. Ghent, Eastern Illinois Univ Alan P. Grant, Baker Univ

  2. Why pot? Why not? • Students are interested in topic • Emerging market • Wide variety of concepts • Fun!

  3. Background on show “A young couple with a dream seek to build the world’s first legal marijuana empire”

  4. Background on show • Follows Brian Rogers and Caitlin McGuire, owners of the Breckenridge Cannabis Club (BCC) • 8 episodes on CNN follow the BCC as Colorado begins selling marijuana to recreational users

  5. Other topics • substitutes • risk & uncertainty • compensating wage differentials • joint production • asymmetric information • sunk costs

  6. More current news: O-HIGH-O • Referendum Tuesday, 11/3 • Issue 3 • allowed both medical and recreational marijuana use • granted exclusive right to 10 farms to grow marijuana • Rejected 64-36 percent

  7. Any questions/comments?