PRICE DISCRIMINATION ON THE MARIJUANA MARKET: SCHWAG OR ENDO?

Dominik Stroukal

Studies in Business and Economics, 2013, vol. 8, issue 2, 128-136

Abstract: This paper presents an example of price discrimination on the market for marijuana in the northern and western Czech Republic in 2006. It is based on a model of a multifirm market with emphasis on the existence of two types of firms and two qualities of a good. It is shown that in the case of a dealer of two qualities of marijuana there is an incentive to raise the price of the higher quality and reduce the price of the lower one. Price discrimination on the marijuana market is found in accordance with the predictions of the model and in the amount of about 50 CZK per gram.

Keywords: marijuana; vertical differentiation; price discrimination (search for similar items in EconPapers)
Date: 2013
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://eccsf.ulbsibiu.ro/RePEc/blg/journl/8214stroukal.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:blg:journl:v:8:y:2013:i:2:p:128-136

Access Statistics for this article

More articles in Studies in Business and Economics from Lucian Blaga University of Sibiu, Faculty of Economic Sciences Lucian Blaga University of Sibiu, Faculty of Economic Sciences Dumbravii Avenue, No 17, postal code 550324, Sibiu, Romania. Contact information at EDIRC.
Bibliographic data for series maintained by Mihaela Herciu ().