It is a good couple of weeks for those interested in the economics of (and innovation in) illicit drug markets. First, HBO started up its mega super miniseries, Boardwalk Empire, about how an Atlantic City official built an organized crime empire following the enactment of the 22nd amendment prohibiting the production and sale of alcohol.
Then we find out that there is an online “weed” price clearinghouse.
And, now, via Marginal Revolution, we learn that the beer distributors actively oppose marijuana legalization in California. So quick 100 and political economy question — do beer distributors think marijuana and beer are more like complements or substitutes? To date, there is no word on whether manufacturers of Cheetos have taken a public stance on the isssue.
Interestingly, the teachers union supports legalization because of “the revenue that could be raised for the state.”