RAND DPRC Insights

Vol. 1, No. 7, 2006

A monthly report on key public policy findings of the RAND Drug Policy Research Center

Innovative National Study of U.S. Marijuana Markets Yields New Insights

Understanding drug markets is key to formulating and implementing effective drug policy. Yet the marijuana market — which is the largest drug market in terms of both number of sellers and users — is perhaps the least studied. In an effort to remedy this, RAND researchers recently studied market and acquisition patterns reported by 55,561 participants in the 2001 National Household Survey on Drug Abuse, of whom 8,339 reported using marijuana during the twelve-month period prior to the survey. Despite existing estimates that the 2001 marijuana market reached sales of $10.5 billion, there is a great deal of informal distribution, typically through strong social networks. Notably, most users obtain the drug for free (59%), from a friend or relative (88%), and through indoor transactions (87%). Only 6% of the most recent transactions reported were purchased from a stranger. This calls into question the effectiveness of common drug enforcement tactics, particularly undercover purchases and sales, at influencing this market. These findings also underscore how different marijuana markets are from the traditional image of street corner drug markets.

Figure: Sources of acquisition of marijuana - 79% acquired from friend, 9 acquired from relative, only 11% is acquired from a stranger

NOTE: Of the 11% of acquisitions that came from a stranger, only 6% were purchases. The other 5% came from trades (1%) and gifts (4%).

Source:

Marijuana Markets: Inferences From Reports by the Household Population

Jonathan P. Caulkins and Rosalie Liccardo Pacula

Full Article (Journal of Drug Issues) »

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