This paper is the result of the study Apreensões de drogas no estado de São Paulo: Um raio-x das apreensões de drogas segundo ocorrências e massa [Drug Seizures in the State of São Paulo: An In-Depth View of Drug Seizures Broken Down by Number of Incidents and Drug Amounts], conducted by...

We model consumer choices for cannabis in a risky environment and determine the supply of cannabis under prohibition and legalization. While introducing a legal market reduces the profits of illegal providers, it increases cannabis consumption. We show that this trade-off can be overcome by...