Channel Power in the Cannabis Industry

• Author(s) / Creator(s)

  • Messinger, Paul Richard

• SSHRC IDG awarded 2020: The proposed research will study three closely­related topics about cannabis legalization: (1) Supply­Chain Study. In the cannabis supply­chain, who will gain the greater proportion of profits or tax revenues: producers, retailers, or government? How do these amounts compare to the benefits to consumers. And to what extent will legal suppliers replace non­regulated black and grey market suppliers, as was the initial intention?, (2) Related Products Study. To what extent has legalization of recreational cannabis consumption led to an increase or decrease in consumption of cannabis, alcohol, and tobacco for adults and youth?, (3) Capital Mobilization Study. How has access to functioning capital markets facilitated growth of a new industry in Canada, as compared to the U.S. (where the illegal status hampers capital markets)? The first part of this planned research will develop game­theoretic supply­chain models that indicate the extent to which the structure of a three­tier system (where producers, distributors, and retailers are required to be entirely or partially independent) leads to better or worse outcomes than a less regulated system where a single firm is allowed to own business at multiple tiers. The second part of this planned research will consist of empirical analysis of data from Statistics Canada. The third part will be a a historical study that examines the top 10 to 20 companies in Canada and USA and considers the extent to which Canadian cannabis legalization has allowed companies to actively seek investment funding from capital markets vis a vis companies operating exclusively in the U.S.

• Date created

  2020-01-02

• Subjects / Keywords

  • Insight Development Grant
  • IDG
  • SSHRC
  • Cannabis Market
  • Supply Chain
  • Channel Power
  • Black Market
  • Cannabis
  • Taxation
  • Alcohol
  • Demand
  • Tobacco
  • Capital Mobilization
  • Initial Public Offerings
  • Prohibition
  • Management
  • Economics
  • History
  • Business
  • Recreation
  • Leisure
  • Tourism
  • Justice
  • Law
  • North America
  • Canada
  • United States

• Type of Item

  Research Material

• DOI

  https://doi.org/10.7939/r3-5mk2-ab59

• License

  ©️Messinger, Paul Richard. All rights reserved other than by permission. This document embargoed to those without UAlberta CCID until 2024.