quote:
Originally posted by Chrono
Not really, the fact that they are illegal makes it hard to distribute, hence high prices. If they legalize it, there would be places where you could easily get it, demand would increase (most likely) and so the price would be lower, mostly cause of the fact that there will be competitive stores or whatever selling it.
Exactly, and another thing is that consumers get close to perfect information.
At the moment, it is really hard to compare prices for drugs, because there are no set prices, and drug dealers don't exactly hang around near each other, plus people aren't likely to say "i'll just go see if I can get it cheaper elsewhere" either.
I.e. a drug dealer has a local monopoly on an area and so they can charge high prices.
If drugs were to be sold, the government would probably create zones where they can be sold, i.e. only in city centres, therefore all the shops that sold them would be very near together, and so the prices would be easier to compare therefore, shops have to compete against each other based on price, so there will be lower prices.
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