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Price Discrimination On The Marijuana Market: Schwag Or Endo?

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  • STROUKAL Dominik

    (University of Economics, Prague, Czech Republic)

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.

Suggested Citation

  • STROUKAL Dominik, 2013. "Price Discrimination On The Marijuana Market: Schwag Or Endo?," Studies in Business and Economics, Lucian Blaga University of Sibiu, Faculty of Economic Sciences, vol. 8(2), pages 128-136, August.
    • Handle: RePEc:blg:journl:v:8:y:2013:i:2:p:128-136
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    File URL: http://eccsf.ulbsibiu.ro/RePEc/blg/journl/8214stroukal.pdf
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    References listed on IDEAS

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