Arbeitspapier

Cannabis Prices on the Dark Web

This paper examines prices of cannabis sold over the anonymous internet marketplace AlphaBay. We analyze cannabis prices of 500 listings from about 140 sellers, originating from 18 countries. We find that both listing characteristics and country characteristics matter. Cannabis prices are lower if sold in larger quantities, so there is a clear quantity discount. Cannabis prices increase with perceived quality. Cannabis prices are also higher when the seller is from a country with a higher GDP per capita or higher electricity prices. The internet based cannabis market seems to be characterized by monopolistic competition where many sellers offer differentiated products with quality variation causing a dispersion of cannabis prices and sellers have some control over the cannabis prices.

Language
Englisch

Bibliographic citation
Series: Tinbergen Institute Discussion Paper ; No. TI 2019-059/V

Classification
Wirtschaft
Illegal Behavior and the Enforcement of Law
Market Structure, Pricing, and Design: Oligopoly and Other Forms of Market Imperfection
Subject
Cannabis prices
Dark Web

Event
Geistige Schöpfung
(who)
Cerveny, Jakub
van Ours, Jan C.
Event
Veröffentlichung
(who)
Tinbergen Institute
(where)
Amsterdam and Rotterdam
(when)
2019

Handle
Last update
10.03.2025, 11:44 AM CET

Data provider

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Object type

  • Arbeitspapier

Associated

  • Cerveny, Jakub
  • van Ours, Jan C.
  • Tinbergen Institute

Time of origin

  • 2019

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