Browsing by Author "Clements, Kenneth W."

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    Pricing and packaging: the case of Marijuana
    (The University of western Australia, 2023) Clements, Kenneth W.
    In many markets unit prices decline as the quantity purchased rises, a phenomenon which can be considered to be part of the economics of packaging. For example, in Australia marijuana costs as much as 80 percent less if purchased in the form of ounces rather than games. This paper reviews the economic foundations of quantity discounts and proposes new ways of measuring and analysing them. These ideas are implemented with the prices of marijuana, a product that is shown to be priced in a manner not too different to that used for groceries and other illic drugs. in broad terms, the results support the following pricing rule: the unit price falls by 2.5 percent when the product size increases by 10 percent.
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    Three facts about marijuana prices
    (2023) Clements, Kenneth W.
    Australians are among the largest consumers of marijuana in the world, and estimates show that their expenditure on marijuana is about twice that on wine. In this paper we analyse the evolution of marijuana prices in Australia and show that they have declined in real terms by almost 40 percent over the last decade. This decline is far above that experienced by most agricultural products. Why has this occurred and what are the implications? The extensive adoption of hydroponic techniques in growing marijuana is likely to have enhanced productivity, with the benefits passed onto consumers in the form of lower prices. We find patterns in the prices that divide the country into three broad regions: (i) Sydney, where prices are highest; (ii) Melbourne and Canberra, which have somewhat lower prices'and (iii) everywhere else, where marijuana is cheapest. We also find that marijuana prices seem to be (positively) related to real estate prices. A further finding is that the price declines have stimulated marijuana consumption by about 15 percent, inhibited drinking (marijuana and alcohol being substitutes) and led to an increase in the real incomes of users in excess of $1 billion p.a.
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    Who cites what?
    (The University of western Australia, 2001-09-23) Clements, Kenneth W.; Wang, Patricia
    PhD students have the talent and identify important, emerging areas in their research. As many of these students will go on to academic careers, this paper uses the citations patterns embodied in their research as a possible leading indicator of what the future may hold in economics and business. We identify areas, articles and authors that Phd students judge to be important and analyse intriguing empirical regularities regarding the citation of Australian publications, reciprocal citations among institutions, the link between institutional size and citations, and the age of publications when cited.