***Official Las Vegas Legal Marijuana Thread***

[GrenadaRoger]

sounds like the goldrush mania that is typical of any new industry (i e, automobiles, hand calculators, personal computers, online poker sites)...then comes the shakeout where the weak companies are forced out and the industry consolidates

imho the worst thing for the public is for the government to restrict entry/production via licensing/quotas--that leads to existing producers getting excess profits (economic rent seeking) and their corrupting politicians to preserve their profits

let market forces run their normal course

the prevailing theory is that the koch brothers and their ilk are creating deliberately exploitable weaknesses in the market, so that early adapter growers cant afford to stay in the market and are forced to sell their licenses, equipment, and land to "big marijuana" for pennies on the dollar.


honestly its quite fucking brilliant.


also its not really a theory considering its exactly what happened in washington. but every state after has made minor variations in the laws without really closing the door on the 'big marijuana' end game.

if you are worried about the industry consolidating into a few players that dominate, the solution is create a fragmented market by making entry to the market easy (simple licensing) while limiting production of any one producer to a small percentage (less than 5%) of the total market...the number of licensees/production limit per licensee should be set to ensure some excess product is supplied and thus ensure competition while preventing economic rent taking

imho excess production will not necessarily lead to consolidation/domination of the market by the few...the same licensing/quota system rent seekers use to lock in excess profits can be used against the seekers to keep the market fragmented from grower to distributor to retailer.

the challenge is to prevent someone like the Kochs eventually buying off politicians to limit competition in the market