I believe it was inevitable that cannabis prices would not drop in legalized states. The tax on Medical Cannabis is zero. The tax on Adult or recreational cannabis is 40%.
It is not that difficult for “people” to become “patients” and enjoy the cost reduction of 40% due to no tax.
If a “person” is going to pay, say $400 for an oz of recreational cannabis, they are going to pay an additional (or built in) tax of 40% or $160. It is cheaper to see a doctor one time per year and go medical.
I can’t believe it is a total coincidence that the cost reduction is nearly exactly what the tax is. Very interesting economics at work -way above my pay grade.
I am not sure what the consequences of this market move will be, but there will continue to be market adjustments with two worlds of cannabis bumping into one another.