A one-percent price cut has a larger shadow

A 1% lower price was associated with roughly 2.29% more quantity purchased, University of California San Diego researchers estimated across ten legal US cannabis markets. Published online in Addiction on 22 October, the study uses 2020–2023 data: 864,616 observations, each relating to a particular product, state and quarter. These are aggregate measures from a nonrandom retailer sample, not a count of individual receipts. The authors suggest taxes could counterbalance rising demand as prices fall, but the model does not imply an identical effect for every shop.