examination of barriers that retailers face to enter the legal cannabis markets in California

• Online Access: http://hdl.handle.net/2047/D20412871

This study uses a qualitative phenomenological approach to examine the regulatory barriers perceived by cannabis retailers in California's adult-use cannabis market that deters or discourages legal market participation. The intent of this study was to uncover how retailers rationalize unregulated or legal market participation, and the extent in which California's regulatory framework impacts that decision. The experiences of the interviewees as they have lived through pre- and post- adult-use program implementation provided insights into the tenets of California's cannabis culture that should be upheld to maximize legal market participation. The outcomes of this research are expected to inform considerations for policy makers to develop effective cannabis regulations that foster legal market participation. It should also serve as a base for future research. Because the study examines the model of human decision making in the context of social and economic structures, Rational Choice Theory was leveraged as a theoretical framework. Using this theoretical framework exposed priorities of participants, how they weigh alternatives and the process of making business decisions to maximize utility. Those interviewed expressed a propensity to identify within California's cannabis culture, the tenets of which include compassion, community, quality of products, social activism, combat stigma associated with cannabis culture and commitment to legitimize the cannabis industry lawfully. Because a key tenet of this cannabis culture is their commitment to the legitimization of the cannabis industry, the findings uncovered that irrespective of the challenges that California's regulatory structure imposed, members of this culture were unlikely to err on the side of non-compliance with the law because that would further delegitimize the industry. The findings from the interviews postulated that disapproval of the industry's regulations is not only because of the punitive barriers it imposes, but the notion that the framework creates an economic model that will dislodge California's cannabis culture from its foundation. This study provides academic validation in social science and behavioral economics to the adult-use marijuana industry legal since 2012. The artifacts of this qualitative phenomenological study expose the pillars of cannabis culture to uphold when developing laws that govern adult-use programs.--Author's abstract