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Table 3 Summary of findings from the studies that use a Marijuana Purchase Task

From: Characteristics that influence purchase choice for cannabis products: a systematic review

Authors—year

Number of prices

Prices (per unit)

Cannabis unit

Demand equation

Significant demand predictors

Summary of results

Price elasticity

 Amlung and MacKillop—2019

20

free, $1, $2, $4, $6, $8, $10, $12, $14, $16, $18, $20, $25, $30, $35, $40, $45, $50, $55, and $60

Dried flower (grams)

Not reported

Intensity

Price elasticity

Pmax

- Illegal cannabis: elasticity = 0.0042 (alone), 0.0095 (with legal alternative); Pmax = 14.09 (alone), 8.22 (with legal alternative); intensity Q0= 9.11 (alone)

- Legal cannabis: elasticity = 0.0029 (alone), 0.0046 (with illegal as alternative); Pmax = 16.28 (alone), 9.65 (with illegal as alternative); intensity Q0= 11.20 (alone)

- Both are inelastic, but illegal cannabis is more elastic

- Having legal cannabis as an alternative had a greater effect on the elasticity of illegal cannabis than vice versa (threefold difference).

- Sensitivity analyses revealed that the asymmetric substitution pattern for legal over illegal cannabis was identical across genders, age, and income demographics

 Amlung et al.—2019.

20

Free, $1, $2, $4, $6, $8, $10, $12, $14, $16, $18, $20, $25, $30, $35, $40, $45, $50, $55, $60

Dried flower (grams)

Nonlinear exponential demand curve model—(Hursh and Silberberg (2008)

Exponential cross price elasticity model (Hursh, 2014)

Intensity

Pmax

Price elasticity

Substitutability

- Illegal cannabis: elasticity = 0.0028 (alone), 0.0047 (with legal alternative); Pmax = 9.41 (alone), 6.16 (with legal alternative); intensity Q0= 11.01 (alone)

- Legal cannabis: elasticity = 0.0016 (alone), 0.0018 (with illegal alternative); Pmax = 11.67 (alone), 10.74 (with illegal alternative); intensity Q0=15.55 (alone)

- Both are inelastic, but illegal cannabis is more elastic, showing greater price sensitivity for illegal cannabis

- Substitution: indicated as present with both fixed-price alternatives having significant positive linear cross-price elasticities (slope of illegal alternative significantly > legal alternative)

- All demand indices demonstrated asymmetrical substitutability with the presence of the legal alternative increasing the elasticity of illegal cannabis to a greater degree than the reverse

 Aston et al.—2015

22

$0, $0.25, $0.50, $0.75, $1, $1.25, $1.50, $1.75, $2, $2.50, $3, $3.50, $4, $4.50, $5, $5.50, $6, $6.50, $7, $8, $9, $10

Average quality hit of cannabis (assume 10 hits of cannabis in a joint; 1 joint = 1/32nd of an ounce = 0.9 g)

Nonlinear exponential demand curve model—Hursh and Silberberg (2008)

Intensity

Omax

Pmax

Breakpoint

Price elasticity

- Intensity Q0: 23.71

- Omax: 16.13

- Pmax: 2.32

- Breakpoint: 4.24

- Elasticity: 0.04

- Income was not associated with demand

 Aston et.al—2016

22

$0, $0.25, $0.50, $0.75, $1, $1.25, $1.50, $1.75, $2, $2.50, $3, $3.50, $4, $4.50, $5, $5.50, $6, $6.50, $7, $8, $9, $10

Average quality hit of cannabis (assume 10 hits of cannabis in a joint; 1 joint = 1/32nd of an ounce = 0.9 g)

Nonlinear exponential demand curve model—Hursh and Silberberg (2008)

Intensity

Omax

Pmax

Breakpoint

Price elasticity

- Intensity Q0: 24.94

- Omax: 16.03

- Pmax: 2.31

- Breakpoint: 4.27

- Elasticity: 0.05

 Collins et al.—2014

16

$0/free, 10¢, 25¢, 50¢, $1, $2, $4, $5, $7.50, $10, $15,

$20, $30, $40, $80, and $160

Average-sized joint of high-grade cannabis

Modified version of the non-linear mixed effects model proposed by Hursh et al. (1998)

Intensity

Breakpoint

Price elasticity

- Intensity = ~ 10 joints when price was free

- Omax: 46.63

- Pmax: 13.21

- Breakpoint = $38.07

- Elasticity = − 1.75 (elastic); demand inelastic across low prices $0/free to $13/joint, but elastic for higher prices of $15 to $160/joint

 Hindocha et al.—2017

23

£0, 1p,2p, 5p, 10p, 15p, 20p, 30p, 40p, 50p, 75p, £1, £1.50, £2, £2.50, £3, £3.50, £5, £5, £7.5, £10, £15, £20

Puff of cannabis

Exponentiated demand equation (Koffarnus et al. 2015)

Intensity

Omax

Pmax

Breakpoint

Price elasticity

- Intensity Q0: 17.14

- Omax: 652.95

- Pmax: 92.19

- Breakpoint: 145.29

- Elasticity: 0.61 (when compared to placebo, cannabis was more sensitive to price)

 Nisbet and Vakil—1972

Unknown

Unknown

Lids (ounces) of dry flower

Double log function

Price elasticity

Expenditure elasticity

- Price elasticity = − 0.365

- Expenditure elasticity = − 0.311

 Patel et al.—2019

20

$0–$60 (specific prices not reported)

Dried Flower (grams)

Nonlinear exponential demand curve model—

Hursh and Silberberg (2008)

Intensity

Omax

Pmax

Breakpoint

Elasticity

- Non-DACU intensity Q0: 8.51

- Non-DACU Omax: 54.80

- Non-DACU Pmax: 15.22

- Non-DACU breakpoint: 22.24

- Non-DACU elasticity: 0.004

- DACU intensity Q0: 13.81

- DACU Omax: 98.92

- DACU Pmax: 16.65

- DACU breakpoint: 29.83

- DACU elasticity: 0.002

Note: This study compared demand for individual who reported Driving after cannabis use (DACU) and those who did not

 Peters et al.—2017

9

$0.01, $0.03, $0.10, $0.30, $1.00, $3.00, $10.00, $30.00, $1000.00

Puff of cannabis

Nonlinear exponential demand curve model—Hursh and Silberberg (2008)

Price elasticity

- Price elasticity: 0.0044 (95% Cl 0.0038, 0.0049)

- Price elasticity did not change by gender, but was slightly different based on nicotine dependence. Both groups still showed inelastic behavior

 Strickland, et al. -2017

13

$0–$11 (specific prices not reported)

Hits of cannabis (hits—10 hits/joint with 1 joint equal to 0.9 g of cannabis)

Exponentiated demand equation (Koffarnus et al. 2015)

Intensity

Elasticity

- Intensity Q0: 35.6

- Elasticity: 0.028

 Strickland et al.—2019

17

$0.00 (free), $0.25, $0.50, $1, $1.50, $2, $2.50, $3, $4, $5, $6, $7, $8, $9, $10, $15, $20

Hits of cannabis (hits—10 hits/joint with 1 joint equal to 0.9 g of cannabis)

Exponentiated demand equation (Koffarnus et al. 2015)

Intensity

Omax

Pmax

Breakpoint

Elasticity

- Intensity Q0: 37.15

- Omax: 16.22

- Pmax: 1.55

- Breakpoint: 3.98

- Elasticity: 0.007

*Note: the paper presented log transformed values, these have been reverted back for easier comparison

 Teeters et al. 2019

20

$0.00—$10.00 (specific prices not reported)

Hit of cannabis (10 hits of cannabis in a joint with 1 joint equaling to 1/32 of an ounce or 0.9 g)

Exponentiated demand equation (Koffarnus et al. 2015)

Intensity

Omax

Pmax

Breakpoint

Price elasticity

- Intensity Q0: 24.41

- Omax: 11.93

- Pmax: 1.59

- Breakpoint: 3.31

- Elasticity: 0.06

 Vincent et al.—2017

9

Free ($0), $2.50, $5.00, $7.50, $10, $12.50, $15, $17.50, and $20

Low-grade, medium-grade, and high-grade joints (an average sized joint was defined as approximately 0.5 g, 5 bong hits, or 10 puffs)

Nonlinear mixed effects modeling (Pinheiro and Bates, 2000)

Intensity

Omax

Pmax

Breakpoint

Price elasticity

- Intensity Q0 (derived): low-grade = 4.56; medium-grade = 5.06; high-grade = 5.85

- Omax (derived): low-grade = 8.53; medium-grade = 13.57; high-grade = 19.49

- Pmax (derived): low-grade = 5.08; medium-grade = 7.28; high-grade = 8.99

- Breakpoint: low-grade = 7.17; medium-grade = 9.86; high-grade = 13.10

- Elasticity: low-grade = −1.97; medium-grade = −1.37; high-grade = −1.11 (when the log transformation is reversed, elasticity values are 0.011, 0.043, and 0.078 respectively)

- Note: Values in this study were square-root or log transformed.

Quality elasticity

 Cole et al.—2008

Cash on hand/income—fixed at 1 level

£40

All dry flower:

poor, average, and good quality.

All £15 per 1/8 oz. (3.5 g).

Not specified

Quality Elasticity

- Quality elasticity: − 1.31

- There were significant correlations between the self-reported number of cannabis joints used per episode and purchases of cannabis in the average and good quality conditions, but not in the poor-quality condition

- As quality of cannabis decreased so did purchases for average and poor quality cannabis compared to good per individual. The number of individuals purchasing cannabis also decreased

 Goudie et al.—2007

Cash on hand/income—8 levels

£20, £25, £30, £35, £40, £45, £50, £55

All dry flower:

poor quality: £10 per 1/8 oz.

Average quality: £15 per 1/8 oz.

Good quality £20 per 1/8 oz.

Not specified

Income elasticity over different levels of quality

- Income elasticity: poor quality (− 0.21); average quality (1.16), good quality (3.14) over all income levels

- Significant interaction between quality and income for the number of units purchased

- Number of respondents purchasing at least a single unit of cannabis at each income level increased significantly for good quality cannabis.

  1. Elasticity, sensitivity of consumption to increases in prices; Pmax, the price at which demand become elastic; intensity (Q0), the amount consumed when price is free; Omax, maximum expenditure; breakpoint, cost at which consumption is suppressed to zero