Hallucinogens in a Monopoly Market

Objective: This paper analyzes the nature of hallucinogenic drugs as goods in a monopoly market. That is, how they behave before the point of addiction, post the point of addiction as well as primarily how a monopolist will benefit in every situation.

Method: Medical analysis has been used to show how individuals develop addictions towards hallucinogens. Moreover, the paper displays how individuals behave in a market of hallucinogenic drugs and what their implications are on the nature of these drugs as goods. Figures have been provided to elaborate on the demand and pricing for the drugs in the monopoly market.

Findings: This paper successfully concludes that prior to the point of addiction, hallucinogenic drugs act as Veblen goods and post the point of addiction behave like GIFFEN GOODS. This conclusiveness allows one to understand how a monopoly over hallucinogens will greatly benefit the supplier not due to the characteristics of a monopoly market, but due to the behavioural tendencies of consumers of hallucinogens both prior to the point of addiction as well as one addiction to the drug has been developed.

Applications: The findings of this paper can be used in behavioural analysis of individuals towards hallucinogens as well as in a pressurized market where the consumers are dependent on the drug and how price level does not determine rationality of the consumer.