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Alvin Roth and Lloyd Shapely won the Nobel Memorial Prize in Economic Sciences for their work on market design back in 2012, but it is a field that is still underrepresented in economics education. All markets have rules, and how these rules are set influence how the market functions.
This teaching pack takes cannabis in Germany as an example of a market that does not yet have a full set of rules. We do not cover arguments for or against the legalisation of cannabis, instead we accept that the German government has chosen to do this, and focus on the question of how to design the market.
You can request the Instructor's Guide on the Economy Studies Website.
This teaching material was designed by Economy Studies and is part of the "This Month in the Economy Exercises" series.