<table><caption>Table A9: Legalization price and resulting demand when the government maximizes tax revenue ($\epsilon = -0.8$)</caption><thead><tr><th rowspan="2">1/N</th><th colspan="4">Policy parameters</th><th colspan="2">Equilibrium prices</th><th colspan="3">Demand and revenue</th><th colspan="3">Eviction scenario</th></tr><tr><th>c</th><th>b</th><th>q</th><th>F</th><th>p</th><th>p<sup>L</sup></th><th>ΔD(p, p<sup>L</sup>)</th><th>s<sup>I</sup>(p, p<sup>L</sup>)</th><th>R</th><th>p<sup>L</sup></th><th>ΔD(p<sup>L</sup>)</th><th>R</th></tr></thead><tbody><tr><td>0.55</td><td>50</td><td>1.58</td><td>0.1%</td><td>1000</td><td>95.33</td><td>297.47</td><td>33%</td><td>35%</td><td>341</td><td>97.79</td><td>104%</td><td>151</td></tr><tr><td>0.55</td><td>25</td><td>1.58</td><td>0.1%</td><td>1000</td><td>78.60</td><td>292.94</td><td>29%</td><td>39%</td><td>320</td><td>57.84</td><td>113%</td><td>71</td></tr><tr><td>0.55</td><td>125</td><td>1.58</td><td>0.1%</td><td>1000</td><td>146.13</td><td>311.84</td><td>45%</td><td>18%</td><td>409</td><td>217.63</td><td>78%</td><td>350</td></tr><tr><td>0.55</td><td>200</td><td>1.58</td><td>0.1%</td><td>1000</td><td>200.42</td><td>338.15</td><td>54%</td><td>0%</td><td>491</td><td>337.47</td><td>54%</td><td>490</td></tr><tr><td>0.10</td><td>50</td><td>1.58</td><td>0.1%</td><td>1000</td><td>61.33</td><td>288.35</td><td>25%</td><td>44%</td><td>300</td><td>97.79</td><td>104%</td><td>151</td></tr><tr><td>0.25</td><td>50</td><td>1.58</td><td>0.1%</td><td>1000</td><td>75.15</td><td>292.01</td><td>28%</td><td>40%</td><td>316</td><td>97.79</td><td>104%</td><td>151</td></tr><tr><td>0.75</td><td>50</td><td>1.58</td><td>0.1%</td><td>1000</td><td>105.23</td><td>300.20</td><td>35%</td><td>32%</td><td>353</td><td>97.79</td><td>104%</td><td>151</td></tr><tr><td>1.00</td><td>50</td><td>1.58</td><td>0.1%</td><td>1000</td><td>115.05</td><td>302.94</td><td>37%</td><td>29%</td><td>366</td><td>97.79</td><td>104%</td><td>151</td></tr><tr><td>0.55</td><td>50</td><td>1.00</td><td>0.1%</td><td>1000</td><td>56.11</td><td>67.85</td><td>102%</td><td>0%</td><td>88</td><td>61.89</td><td>104%</td><td>77</td></tr><tr><td>0.55</td><td>50</td><td>1.10</td><td>0.1%</td><td>1000</td><td>55.20</td><td>84.04</td><td>76%</td><td>15%</td><td>103</td><td>68.08</td><td>104%</td><td>90</td></tr><tr><td>0.55</td><td>50</td><td>1.30</td><td>0.1%</td><td>1000</td><td>76.13</td><td>173.87</td><td>44%</td><td>31%</td><td>205</td><td>80.46</td><td>104%</td><td>115</td></tr><tr><td>0.55</td><td>50</td><td>1.80</td><td>0.1%</td><td>1000</td><td>105.56</td><td>393.40</td><td>28%</td><td>36%</td><td>443</td><td>111.41</td><td>104%</td><td>180</td></tr><tr><td>0.55</td><td>50</td><td>1.58</td><td>0.2%</td><td>1000</td><td>92.88</td><td>302.42</td><td>33%</td><td>33%</td><td>351</td><td>111.56</td><td>101%</td><td>177</td></tr><tr><td>0.55</td><td>50</td><td>1.58</td><td>0.5%</td><td>1000</td><td>86.81</td><td>314.70</td><td>36%</td><td>29%</td><td>377</td><td>146.68</td><td>93%</td><td>240</td></tr><tr><td>0.55</td><td>50</td><td>1.58</td><td>1.0%</td><td>1000</td><td>78.42</td><td>331.60</td><td>38%</td><td>23%</td><td>413</td><td>197.33</td><td>82%</td><td>320</td></tr><tr><td>0.55</td><td>50</td><td>1.58</td><td>0.0%</td><td>1000</td><td>98.73</td><td>290.60</td><td>31%</td><td>37%</td><td>327</td><td>79.00</td><td>108%</td><td>115</td></tr><tr><td>0.55</td><td>50</td><td>1.58</td><td>0.1%</td><td>100</td><td>98.65</td><td>295.63</td><td>31%</td><td>37%</td><td>333</td><td>81.68</td><td>108%</td><td>120</td></tr><tr><td>0.55</td><td>50</td><td>1.58</td><td>0.1%</td><td>500</td><td>97.17</td><td>296.45</td><td>32%</td><td>36%</td><td>336</td><td>88.84</td><td>106%</td><td>134</td></tr><tr><td>0.55</td><td>50</td><td>1.58</td><td>0.1%</td><td>1500</td><td>93.49</td><td>298.51</td><td>33%</td><td>34%</td><td>346</td><td>106.74</td><td>102%</td><td>168</td></tr><tr><td>0.55</td><td>50</td><td>1.58</td><td>0.1%</td><td>2000</td><td>91.66</td><td>299.55</td><td>34%</td><td>32%</td><td>350</td><td>115.68</td><td>100%</td><td>185</td></tr></tbody></table>

Notes: The above results are based on a price demand elasticity of 0.8 and the corresponding distribution parameters (see table A2). The marginal cost on the legal market, $c^L$, is USD 25 per ounce. The tax revenue in USD *per capita* and *per annum* is given as the product of the difference $p^L - c^L$ with the extensive and intensive margins of consumption. The intensive margin is approximated using Orens et al. (2018) estimates for consumption in Colorado in 2017.
<table><caption>Table A10: Legalization price and resulting demand when the government maximizes tax revenue ($\epsilon = -0.7$)</caption><thead><tr><th rowspan="2">1/N</th><th colspan="4">Policy parameters</th><th colspan="2">Equilibrium prices</th><th colspan="3">Equilibrium demand and revenue</th><th colspan="3">Eviction scenario</th></tr><tr><th>c</th><th>b</th><th>q</th><th>F</th><th>p</th><th>p<sup>L</sup></th><th>ΔD(p, p<sup>L</sup>)</th><th>s<sup>I</sup>(p, p<sup>L</sup>)</th><th>R</th><th>p<sup>L</sup></th><th>ΔD(p<sup>L</sup>)</th><th>R</th></tr></thead><tbody><tr><td>0.55</td><td>50</td><td>1.58</td><td>0.1%</td><td>1000</td><td>101.78</td><td>325.65</td><td>21%</td><td>36%</td><td>342</td><td>97.79</td><td>89%</td><td>140</td></tr><tr><td>0.55</td><td>25</td><td>1.58</td><td>0.1%</td><td>1000</td><td>85.11</td><td>321.32</td><td>18%</td><td>40%</td><td>323</td><td>57.84</td><td>96%</td><td>66</td></tr><tr><td>0.55</td><td>125</td><td>1.58</td><td>0.1%</td><td>1000</td><td>152.34</td><td>339.28</td><td>31%</td><td>21%</td><td>403</td><td>217.63</td><td>67%</td><td>328</td></tr><tr><td>0.55</td><td>200</td><td>1.58</td><td>0.1%</td><td>1000</td><td>203.66</td><td>353.91</td><td>42%</td><td>3%</td><td>473</td><td>337.47</td><td>47%</td><td>467</td></tr><tr><td>0.10</td><td>50</td><td>1.58</td><td>0.1%</td><td>1000</td><td>62.98</td><td>315.69</td><td>14%</td><td>45%</td><td>300</td><td>97.79</td><td>89%</td><td>140</td></tr><tr><td>0.25</td><td>50</td><td>1.58</td><td>0.1%</td><td>1000</td><td>78.78</td><td>319.69</td><td>17%</td><td>42%</td><td>316</td><td>97.79</td><td>89%</td><td>140</td></tr><tr><td>0.75</td><td>50</td><td>1.58</td><td>0.1%</td><td>1000</td><td>113.04</td><td>328.62</td><td>23%</td><td>33%</td><td>355</td><td>97.79</td><td>89%</td><td>140</td></tr><tr><td>1.00</td><td>50</td><td>1.58</td><td>0.1%</td><td>1000</td><td>124.19</td><td>331.60</td><td>25%</td><td>30%</td><td>368</td><td>97.79</td><td>89%</td><td>140</td></tr><tr><td>0.55</td><td>50</td><td>1.00</td><td>0.1%</td><td>1000</td><td>57.06</td><td>69.03</td><td>87%</td><td>0%</td><td>84</td><td>61.89</td><td>89%</td><td>71</td></tr><tr><td>0.55</td><td>50</td><td>1.10</td><td>0.1%</td><td>1000</td><td>56.88</td><td>89.07</td><td>58%</td><td>18%</td><td>100</td><td>68.08</td><td>89%</td><td>83</td></tr><tr><td>0.55</td><td>50</td><td>1.30</td><td>0.1%</td><td>1000</td><td>80.38</td><td>188.68</td><td>31%</td><td>32%</td><td>204</td><td>80.46</td><td>89%</td><td>107</td></tr><tr><td>0.55</td><td>50</td><td>1.80</td><td>0.1%</td><td>1000</td><td>113.15</td><td>431.97</td><td>17%</td><td>37%</td><td>445</td><td>111.41</td><td>89%</td><td>166</td></tr><tr><td>0.55</td><td>50</td><td>1.58</td><td>0.2%</td><td>1000</td><td>99.34</td><td>330.90</td><td>22%</td><td>34%</td><td>351</td><td>111.56</td><td>86%</td><td>164</td></tr><tr><td>0.55</td><td>50</td><td>1.58</td><td>0.5%</td><td>1000</td><td>93.27</td><td>343.94</td><td>23%</td><td>31%</td><td>376</td><td>146.68</td><td>80%</td><td>223</td></tr><tr><td>0.55</td><td>50</td><td>1.58</td><td>1.0%</td><td>1000</td><td>84.87</td><td>361.86</td><td>25%</td><td>26%</td><td>409</td><td>197.33</td><td>71%</td><td>299</td></tr><tr><td>0.55</td><td>50</td><td>1.58</td><td>0.0%</td><td>1000</td><td>105.18</td><td>318.35</td><td>20%</td><td>38%</td><td>328</td><td>79.00</td><td>92%</td><td>106</td></tr><tr><td>0.55</td><td>50</td><td>1.58</td><td>0.1%</td><td>100</td><td>105.13</td><td>323.89</td><td>20%</td><td>37%</td><td>334</td><td>81.68</td><td>92%</td><td>111</td></tr><tr><td>0.55</td><td>50</td><td>1.58</td><td>0.1%</td><td>500</td><td>103.64</td><td>324.67</td><td>20%</td><td>37%</td><td>337</td><td>88.84</td><td>90%</td><td>124</td></tr><tr><td>0.55</td><td>50</td><td>1.58</td><td>0.1%</td><td>1500</td><td>99.93</td><td>326.63</td><td>22%</td><td>35%</td><td>346</td><td>106.74</td><td>87%</td><td>156</td></tr><tr><td>0.55</td><td>50</td><td>1.58</td><td>0.1%</td><td>2000</td><td>98.08</td><td>327.62</td><td>22%</td><td>34%</td><td>350</td><td>115.68</td><td>85%</td><td>171</td></tr></tbody></table>

<footnote>Notes: The above results are based on a price demand elasticity of 0.7 and the corresponding distribution parameters (see table A2). The marginal cost on the legal market, $c^L$, is USD 25 per ounce. The tax revenue in USD *per capita* and *per annum* is given as the product of the difference $p^L - c^L$ with the extensive and intensive margins of consumption. The intensive margin is approximated using Orens et al. (2018) estimates for consumption in Colorado in 2017.</footnote>
<table><caption>Table A10: Legalization price and resulting demand when the government maximizes tax revenue ($\epsilon = -0.7$)</caption><thead><tr><th rowspan="2">1/N</th><th colspan="4">Policy parameters</th><th colspan="2">Equilibrium prices</th><th colspan="3">Equilibrium demand and revenue</th><th colspan="3">Eviction scenario</th></tr><tr><th>c</th><th>b</th><th>q</th><th>F</th><th>p</th><th>p<sup>L</sup></th><th>ΔD(p, p<sup>L</sup>)</th><th>s<sup>I</sup>(p, p<sup>L</sup>)</th><th>R</th><th>p<sup>L</sup></th><th>ΔD(p<sup>L</sup>)</th><th>R</th></tr></thead><tbody><tr><td>0.55</td><td>50</td><td>1.58</td><td>0.1%</td><td>1000</td><td>101.78</td><td>325.65</td><td>21%</td><td>36%</td><td>342</td><td>97.79</td><td>89%</td><td>140</td></tr><tr><td>0.55</td><td>25</td><td>1.58</td><td>0.1%</td><td>1000</td><td>85.11</td><td>321.32</td><td>18%</td><td>40%</td><td>323</td><td>57.84</td><td>96%</td><td>66</td></tr><tr><td>0.55</td><td>125</td><td>1.58</td><td>0.1%</td><td>1000</td><td>152.34</td><td>339.28</td><td>31%</td><td>21%</td><td>403</td><td>217.63</td><td>67%</td><td>328</td></tr><tr><td>0.55</td><td>200</td><td>1.58</td><td>0.1%</td><td>1000</td><td>203.66</td><td>353.91</td><td>42%</td><td>3%</td><td>473</td><td>337.47</td><td>47%</td><td>467</td></tr><tr><td>0.10</td><td>50</td><td>1.58</td><td>0.1%</td><td>1000</td><td>62.98</td><td>315.69</td><td>14%</td><td>45%</td><td>300</td><td>97.79</td><td>89%</td><td>140</td></tr><tr><td>0.25</td><td>50</td><td>1.58</td><td>0.1%</td><td>1000</td><td>78.78</td><td>319.69</td><td>17%</td><td>42%</td><td>316</td><td>97.79</td><td>89%</td><td>140</td></tr><tr><td>0.75</td><td>50</td><td>1.58</td><td>0.1%</td><td>1000</td><td>113.04</td><td>328.62</td><td>23%</td><td>33%</td><td>355</td><td>97.79</td><td>89%</td><td>140</td></tr><tr><td>1.00</td><td>50</td><td>1.58</td><td>0.1%</td><td>1000</td><td>124.19</td><td>331.60</td><td>25%</td><td>30%</td><td>368</td><td>97.79</td><td>89%</td><td>140</td></tr><tr><td>0.55</td><td>50</td><td>1.00</td><td>0.1%</td><td>1000</td><td>57.06</td><td>69.03</td><td>87%</td><td>0%</td><td>84</td><td>61.89</td><td>89%</td><td>71</td></tr><tr><td>0.55</td><td>50</td><td>1.10</td><td>0.1%</td><td>1000</td><td>56.88</td><td>89.07</td><td>58%</td><td>18%</td><td>100</td><td>68.08</td><td>89%</td><td>83</td></tr><tr><td>0.55</td><td>50</td><td>1.30</td><td>0.1%</td><td>1000</td><td>80.38</td><td>188.68</td><td>31%</td><td>32%</td><td>204</td><td>80.46</td><td>89%</td><td>107</td></tr><tr><td>0.55</td><td>50</td><td>1.80</td><td>0.1%</td><td>1000</td><td>113.15</td><td>431.97</td><td>17%</td><td>37%</td><td>445</td><td>111.41</td><td>89%</td><td>166</td></tr><tr><td>0.55</td><td>50</td><td>1.58</td><td>0.2%</td><td>1000</td><td>99.34</td><td>330.90</td><td>22%</td><td>34%</td><td>351</td><td>111.56</td><td>86%</td><td>164</td></tr><tr><td>0.55</td><td>50</td><td>1.58</td><td>0.5%</td><td>1000</td><td>93.27</td><td>343.94</td><td>23%</td><td>31%</td><td>376</td><td>146.68</td><td>80%</td><td>223</td></tr><tr><td>0.55</td><td>50</td><td>1.58</td><td>1.0%</td><td>1000</td><td>84.87</td><td>361.86</td><td>25%</td><td>26%</td><td>409</td><td>197.33</td><td>71%</td><td>299</td></tr><tr><td>0.55</td><td>50</td><td>1.58</td><td>0.0%</td><td>1000</td><td>105.18</td><td>318.35</td><td>20%</td><td>38%</td><td>328</td><td>79.00</td><td>92%</td><td>106</td></tr><tr><td>0.55</td><td>50</td><td>1.58</td><td>0.1%</td><td>100</td><td>105.13</td><td>323.89</td><td>20%</td><td>37%</td><td>334</td><td>81.68</td><td>92%</td><td>111</td></tr><tr><td>0.55</td><td>50</td><td>1.58</td><td>0.1%</td><td>500</td><td>103.64</td><td>324.67</td><td>20%</td><td>37%</td><td>337</td><td>88.84</td><td>90%</td><td>124</td></tr><tr><td>0.55</td><td>50</td><td>1.58</td><td>0.1%</td><td>1500</td><td>99.93</td><td>326.63</td><td>22%</td><td>35%</td><td>346</td><td>106.74</td><td>87%</td><td>156</td></tr><tr><td>0.55</td><td>50</td><td>1.58</td><td>0.1%</td><td>2000</td><td>98.08</td><td>327.62</td><td>22%</td><td>34%</td><td>350</td><td>115.68</td><td>85%</td><td>171</td></tr></tbody></table>

<footnote>Notes: The above results are based on a price demand elasticity of 0.7 and the corresponding distribution parameters (see table A2). The marginal cost on the legal market, $c^L$, is USD 25 per ounce. The tax revenue in USD *per capita* and *per annum* is given as the product of the difference $p^L - c^L$ with the extensive and intensive margins of consumption. The intensive margin is approximated using Orens et al. (2018) estimates for consumption in Colorado in 2017.</footnote>
<table><caption>Table A11: Legalization price and resulting demand when the government maximizes tax revenue ($\epsilon = -0.6$)</caption><thead><tr><th rowspan="2">1/N</th><th colspan="4">Policy parameters</th><th colspan="2">Equilibrium prices</th><th colspan="3">Equilibrium demand and revenue</th><th colspan="3">Eviction scenario</th></tr><tr><th>c</th><th>b</th><th>q</th><th>F</th><th>p</th><th>p<sup>L</sup></th><th>ΔD(p, p<sup>L</sup>)</th><th>s<sup>L</sup>(p, p<sup>L</sup>)</th><th>R</th><th>p<sup>L</sup></th><th>ΔD(p<sup>L</sup>)</th><th>R</th></tr></thead><tbody><tr><td>0.55</td><td>50</td><td>1.58</td><td>0.1%</td><td>1000</td><td>110.50</td><td>363.72</td><td>10%</td><td>37%</td><td>348</td><td>97.79</td><td>74%</td><td>129</td></tr><tr><td>0.55</td><td>25</td><td>1.58</td><td>0.1%</td><td>1000</td><td>93.89</td><td>359.59</td><td>7%</td><td>41%</td><td>331</td><td>57.84</td><td>80%</td><td>60</td></tr><tr><td>0.55</td><td>125</td><td>1.58</td><td>0.1%</td><td>1000</td><td>160.82</td><td>376.65</td><td>18%</td><td>24%</td><td>403</td><td>217.63</td><td>56%</td><td>306</td></tr><tr><td>0.55</td><td>200</td><td>1.58</td><td>0.1%</td><td>1000</td><td>211.81</td><td>390.40</td><td>26%</td><td>9%</td><td>464</td><td>337.47</td><td>39%</td><td>443</td></tr><tr><td>0.10</td><td>50</td><td>1.58</td><td>0.1%</td><td>1000</td><td>65.21</td><td>352.61</td><td>3%</td><td>47%</td><td>304</td><td>97.79</td><td>74%</td><td>129</td></tr><tr><td>0.25</td><td>50</td><td>1.58</td><td>0.1%</td><td>1000</td><td>83.68</td><td>357.08</td><td>6%</td><td>43%</td><td>321</td><td>97.79</td><td>74%</td><td>129</td></tr><tr><td>0.75</td><td>50</td><td>1.58</td><td>0.1%</td><td>1000</td><td>123.60</td><td>367.03</td><td>12%</td><td>34%</td><td>362</td><td>97.79</td><td>74%</td><td>129</td></tr><tr><td>1.00</td><td>50</td><td>1.58</td><td>0.1%</td><td>1000</td><td>136.54</td><td>370.34</td><td>14%</td><td>30%</td><td>376</td><td>97.79</td><td>74%</td><td>129</td></tr><tr><td>0.55</td><td>50</td><td>1.00</td><td>0.1%</td><td>1000</td><td>51.86</td><td>63.69</td><td>74%</td><td>0%</td><td>68</td><td>61.89</td><td>74%</td><td>65</td></tr><tr><td>0.55</td><td>50</td><td>1.10</td><td>0.1%</td><td>1000</td><td>59.24</td><td>96.04</td><td>41%</td><td>21%</td><td>98</td><td>68.08</td><td>74%</td><td>76</td></tr><tr><td>0.55</td><td>50</td><td>1.30</td><td>0.1%</td><td>1000</td><td>86.15</td><td>208.78</td><td>18%</td><td>33%</td><td>206</td><td>80.46</td><td>74%</td><td>98</td></tr><tr><td>0.55</td><td>50</td><td>1.80</td><td>0.1%</td><td>1000</td><td>123.41</td><td>484.03</td><td>6%</td><td>38%</td><td>454</td><td>111.41</td><td>74%</td><td>153</td></tr><tr><td>0.55</td><td>50</td><td>1.58</td><td>0.2%</td><td>1000</td><td>108.07</td><td>369.42</td><td>10%</td><td>36%</td><td>357</td><td>111.56</td><td>72%</td><td>152</td></tr><tr><td>0.55</td><td>50</td><td>1.58</td><td>0.5%</td><td>1000</td><td>102.03</td><td>383.54</td><td>12%</td><td>32%</td><td>380</td><td>146.68</td><td>67%</td><td>207</td></tr><tr><td>0.55</td><td>50</td><td>1.58</td><td>1.0%</td><td>1000</td><td>93.64</td><td>402.94</td><td>13%</td><td>28%</td><td>412</td><td>197.33</td><td>59%</td><td>279</td></tr><tr><td>0.55</td><td>50</td><td>1.58</td><td>0.0%</td><td>1000</td><td>113.88</td><td>355.81</td><td>9%</td><td>38%</td><td>335</td><td>79.00</td><td>77%</td><td>97</td></tr><tr><td>0.55</td><td>50</td><td>1.58</td><td>0.1%</td><td>100</td><td>113.87</td><td>362.05</td><td>9%</td><td>38%</td><td>341</td><td>81.68</td><td>77%</td><td>102</td></tr><tr><td>0.55</td><td>50</td><td>1.58</td><td>0.1%</td><td>500</td><td>112.38</td><td>362.79</td><td>9%</td><td>38%</td><td>344</td><td>88.84</td><td>75%</td><td>114</td></tr><tr><td>0.55</td><td>50</td><td>1.58</td><td>0.1%</td><td>1500</td><td>108.64</td><td>364.66</td><td>10%</td><td>36%</td><td>352</td><td>106.74</td><td>73%</td><td>144</td></tr><tr><td>0.55</td><td>50</td><td>1.58</td><td>0.1%</td><td>2000</td><td>106.77</td><td>365.60</td><td>11%</td><td>35%</td><td>356</td><td>115.68</td><td>71%</td><td>158</td></tr></tbody></table>

<footnote>Notes: The above results are based on a price demand elasticity of 0.6 and the corresponding distribution parameters (see table A2). The marginal cost on the legal market, $c^L$, is USD 25 per ounce. The tax revenue in USD *per capita* and *per annum* is given as the product of the difference $p^L - c^L$ with the extensive and intensive margins of consumption. The intensive margin is approximated using Orens et al. (2018) estimates for consumption in Colorado in 2017.</footnote>
<table><caption>Table A11: Legalization price and resulting demand when the government maximizes tax revenue ($\epsilon = -0.6$)</caption><thead><tr><th rowspan="2">1/N</th><th colspan="4">Policy parameters</th><th colspan="2">Equilibrium prices</th><th colspan="3">Equilibrium demand and revenue</th><th colspan="3">Eviction scenario</th></tr><tr><th>c</th><th>b</th><th>q</th><th>F</th><th>p</th><th>p<sup>L</sup></th><th>ΔD(p, p<sup>L</sup>)</th><th>s<sup>I</sup>(p, p<sup>L</sup>)</th><th>R</th><th>p<sup>L</sup></th><th>ΔD(p<sup>L</sup>)</th><th>R</th></tr></thead><tbody><tr><td>0.55</td><td>50</td><td>1.58</td><td>0.1%</td><td>1000</td><td>110.50</td><td>363.72</td><td>10%</td><td>37%</td><td>348</td><td>97.79</td><td>74%</td><td>129</td></tr><tr><td>0.55</td><td>25</td><td>1.58</td><td>0.1%</td><td>1000</td><td>93.89</td><td>359.59</td><td>7%</td><td>41%</td><td>331</td><td>57.84</td><td>80%</td><td>60</td></tr><tr><td>0.55</td><td>125</td><td>1.58</td><td>0.1%</td><td>1000</td><td>160.82</td><td>376.65</td><td>18%</td><td>24%</td><td>403</td><td>217.63</td><td>56%</td><td>306</td></tr><tr><td>0.55</td><td>200</td><td>1.58</td><td>0.1%</td><td>1000</td><td>211.81</td><td>390.40</td><td>26%</td><td>9%</td><td>464</td><td>337.47</td><td>39%</td><td>443</td></tr><tr><td>0.10</td><td>50</td><td>1.58</td><td>0.1%</td><td>1000</td><td>65.21</td><td>352.61</td><td>3%</td><td>47%</td><td>304</td><td>97.79</td><td>74%</td><td>129</td></tr><tr><td>0.25</td><td>50</td><td>1.58</td><td>0.1%</td><td>1000</td><td>83.68</td><td>357.08</td><td>6%</td><td>43%</td><td>321</td><td>97.79</td><td>74%</td><td>129</td></tr><tr><td>0.75</td><td>50</td><td>1.58</td><td>0.1%</td><td>1000</td><td>123.60</td><td>367.03</td><td>12%</td><td>34%</td><td>362</td><td>97.79</td><td>74%</td><td>129</td></tr><tr><td>1.00</td><td>50</td><td>1.58</td><td>0.1%</td><td>1000</td><td>136.54</td><td>370.34</td><td>14%</td><td>30%</td><td>376</td><td>97.79</td><td>74%</td><td>129</td></tr><tr><td>0.55</td><td>50</td><td>1.00</td><td>0.1%</td><td>1000</td><td>51.86</td><td>63.69</td><td>74%</td><td>0%</td><td>68</td><td>61.89</td><td>74%</td><td>65</td></tr><tr><td>0.55</td><td>50</td><td>1.10</td><td>0.1%</td><td>1000</td><td>59.24</td><td>96.04</td><td>41%</td><td>21%</td><td>98</td><td>68.08</td><td>74%</td><td>76</td></tr><tr><td>0.55</td><td>50</td><td>1.30</td><td>0.1%</td><td>1000</td><td>86.15</td><td>208.78</td><td>18%</td><td>33%</td><td>206</td><td>80.46</td><td>74%</td><td>98</td></tr><tr><td>0.55</td><td>50</td><td>1.80</td><td>0.1%</td><td>1000</td><td>123.41</td><td>484.03</td><td>6%</td><td>38%</td><td>454</td><td>111.41</td><td>74%</td><td>153</td></tr><tr><td>0.55</td><td>50</td><td>1.58</td><td>0.2%</td><td>1000</td><td>108.07</td><td>369.42</td><td>10%</td><td>36%</td><td>357</td><td>111.56</td><td>72%</td><td>152</td></tr><tr><td>0.55</td><td>50</td><td>1.58</td><td>0.5%</td><td>1000</td><td>102.03</td><td>383.54</td><td>12%</td><td>32%</td><td>380</td><td>146.68</td><td>67%</td><td>207</td></tr><tr><td>0.55</td><td>50</td><td>1.58</td><td>1.0%</td><td>1000</td><td>93.64</td><td>402.94</td><td>13%</td><td>28%</td><td>412</td><td>197.33</td><td>59%</td><td>279</td></tr><tr><td>0.55</td><td>50</td><td>1.58</td><td>0.0%</td><td>1000</td><td>113.88</td><td>355.81</td><td>9%</td><td>38%</td><td>335</td><td>79.00</td><td>77%</td><td>97</td></tr><tr><td>0.55</td><td>50</td><td>1.58</td><td>0.1%</td><td>100</td><td>113.87</td><td>362.05</td><td>9%</td><td>38%</td><td>341</td><td>81.68</td><td>77%</td><td>102</td></tr><tr><td>0.55</td><td>50</td><td>1.58</td><td>0.1%</td><td>500</td><td>112.38</td><td>362.79</td><td>9%</td><td>38%</td><td>344</td><td>88.84</td><td>75%</td><td>114</td></tr><tr><td>0.55</td><td>50</td><td>1.58</td><td>0.1%</td><td>1500</td><td>108.64</td><td>364.66</td><td>10%</td><td>36%</td><td>352</td><td>106.74</td><td>73%</td><td>144</td></tr><tr><td>0.55</td><td>50</td><td>1.58</td><td>0.1%</td><td>2000</td><td>106.77</td><td>365.60</td><td>11%</td><td>35%</td><td>356</td><td>115.68</td><td>71%</td><td>158</td></tr></tbody></table>

<footnote>Notes: The above results are based on a price demand elasticity of 0.6 and the corresponding distribution parameters (see table A2). The marginal cost on the legal market, $c^L$, is USD 25 per ounce. The tax revenue in USD *per capita* and *per annum* is given as the product of the difference $p^L - c^L$ with the extensive and intensive margins of consumption. The intensive margin is approximated using Orens et al. (2018) estimates for consumption in Colorado in 2017.</footnote>
<table><caption>Table A12: Legalization price and resulting demand when the government maximizes tax revenue ($\epsilon = -0.5$)</caption><thead><tr><th rowspan="2">1/N</th><th colspan="4">Policy parameters</th><th colspan="2">Equilibrium prices</th><th colspan="3">Equilibrium demand and revenue</th><th colspan="3">Eviction scenario</th></tr><tr><th>c</th><th>b</th><th>q</th><th>F</th><th>p</th><th>p<sup>L</sup></th><th>ΔD(p, p<sup>L</sup>)</th><th>s<sup>I</sup>(p, p<sup>L</sup>)</th><th>R</th><th>p<sup>L</sup></th><th>ΔD(p<sup>L</sup>)</th><th>R</th></tr></thead><tbody><tr><td>0.55</td><td>50</td><td>1.58</td><td>0.1%</td><td>1000</td><td>122.89</td><td>417.78</td><td>-1%</td><td>38%</td><td>363</td><td>97.79</td><td>60%</td><td>119</td></tr><tr><td>0.55</td><td>25</td><td>1.58</td><td>0.1%</td><td>1000</td><td>106.32</td><td>413.84</td><td>-3%</td><td>41%</td><td>348</td><td>57.84</td><td>65%</td><td>55</td></tr><tr><td>0.55</td><td>125</td><td>1.58</td><td>0.1%</td><td>1000</td><td>172.96</td><td>430.04</td><td>5%</td><td>27%</td><td>412</td><td>217.63</td><td>46%</td><td>286</td></tr><tr><td>0.55</td><td>200</td><td>1.58</td><td>0.1%</td><td>1000</td><td>223.61</td><td>442.94</td><td>12%</td><td>15%</td><td>466</td><td>337.47</td><td>32%</td><td>421</td></tr><tr><td>0.10</td><td>50</td><td>1.58</td><td>0.1%</td><td>1000</td><td>68.37</td><td>404.99</td><td>-7%</td><td>48%</td><td>315</td><td>97.79</td><td>60%</td><td>119</td></tr><tr><td>0.25</td><td>50</td><td>1.58</td><td>0.1%</td><td>1000</td><td>90.64</td><td>410.15</td><td>-5%</td><td>44%</td><td>334</td><td>97.79</td><td>60%</td><td>119</td></tr><tr><td>0.75</td><td>50</td><td>1.58</td><td>0.1%</td><td>1000</td><td>138.60</td><td>421.58</td><td>1%</td><td>35%</td><td>378</td><td>97.79</td><td>60%</td><td>119</td></tr><tr><td>1.00</td><td>50</td><td>1.58</td><td>0.1%</td><td>1000</td><td>154.09</td><td>425.36</td><td>3%</td><td>31%</td><td>393</td><td>97.79</td><td>60%</td><td>119</td></tr><tr><td>0.55</td><td>50</td><td>1.00</td><td>0.1%</td><td>1000</td><td>53.11</td><td>65.03</td><td>59%</td><td>0%</td><td>65</td><td>61.89</td><td>60%</td><td>60</td></tr><tr><td>0.55</td><td>50</td><td>1.10</td><td>0.1%</td><td>1000</td><td>62.68</td><td>106.11</td><td>25%</td><td>24%</td><td>99</td><td>68.08</td><td>60%</td><td>70</td></tr><tr><td>0.55</td><td>50</td><td>1.30</td><td>0.1%</td><td>1000</td><td>94.38</td><td>237.41</td><td>7%</td><td>35%</td><td>213</td><td>80.46</td><td>60%</td><td>90</td></tr><tr><td>0.55</td><td>50</td><td>1.80</td><td>0.1%</td><td>1000</td><td>137.95</td><td>557.87</td><td>-4%</td><td>39%</td><td>475</td><td>111.41</td><td>60%</td><td>141</td></tr><tr><td>0.55</td><td>50</td><td>1.58</td><td>0.2%</td><td>1000</td><td>120.48</td><td>424.13</td><td>-1%</td><td>37%</td><td>372</td><td>111.56</td><td>58%</td><td>140</td></tr><tr><td>0.55</td><td>50</td><td>1.58</td><td>0.5%</td><td>1000</td><td>114.49</td><td>439.87</td><td>0%</td><td>34%</td><td>394</td><td>146.68</td><td>54%</td><td>191</td></tr><tr><td>0.55</td><td>50</td><td>1.58</td><td>1.0%</td><td>1000</td><td>106.15</td><td>461.47</td><td>2%</td><td>30%</td><td>424</td><td>197.33</td><td>48%</td><td>260</td></tr><tr><td>0.55</td><td>50</td><td>1.58</td><td>0.0%</td><td>1000</td><td>126.22</td><td>408.95</td><td>-2%</td><td>39%</td><td>351</td><td>79.00</td><td>62%</td><td>89</td></tr><tr><td>0.55</td><td>50</td><td>1.58</td><td>0.1%</td><td>100</td><td>126.28</td><td>416.18</td><td>-2%</td><td>39%</td><td>357</td><td>81.68</td><td>62%</td><td>94</td></tr><tr><td>0.55</td><td>50</td><td>1.58</td><td>0.1%</td><td>500</td><td>124.77</td><td>416.89</td><td>-1%</td><td>39%</td><td>360</td><td>88.84</td><td>61%</td><td>105</td></tr><tr><td>0.55</td><td>50</td><td>1.58</td><td>0.1%</td><td>1500</td><td>121.01</td><td>418.68</td><td>-1%</td><td>37%</td><td>367</td><td>106.74</td><td>59%</td><td>132</td></tr><tr><td>0.55</td><td>50</td><td>1.58</td><td>0.1%</td><td>2000</td><td>119.13</td><td>419.57</td><td>0%</td><td>36%</td><td>370</td><td>115.68</td><td>58%</td><td>146</td></tr></tbody></table>

Notes: The above results are based on a price demand elasticity of 0.5 and the corresponding distribution parameters (see table A2). The marginal cost on the legal market, $c^L$, is USD 25 per ounce. The tax revenue in USD *per capita* and *per annum* is given as the product of the difference $p^L - c^L$ with the extensive and intensive margins of consumption. The intensive margin is approximated using Orens et al. (2018) estimates for consumption in Colorado in 2017.

<table><caption>Table A13: Legalization price and resulting demand when the government maximizes tax revenue and $q = 0$, for $\epsilon = -0.8$</caption><thead><tr><th rowspan="2">1/N</th><th colspan="2">Policy parameters</th><th colspan="2">Equilibrium prices</th><th colspan="3">Equilibrium demand and revenue</th><th colspan="3">Eviction scenario</th></tr><tr><th>c</th><th>b</th><th>p</th><th>p<sup>L</sup></th><th>ΔD(p, p<sup>L</sup>)</th><th>s<sup>I</sup>(p, p<sup>L</sup>)</th><th>R</th><th>p<sup>L</sup></th><th>ΔD(p<sup>L</sup>)</th><th>R</th></tr></thead><tbody><tr><td>0.55</td><td>50</td><td>1.58</td><td>98.73</td><td>290.60</td><td>91%</td><td>37%</td><td>327</td><td>79.0</td><td>108%</td><td>115</td></tr><tr><td>0.55</td><td>25</td><td>1.58</td><td>82.06</td><td>286.12</td><td>97%</td><td>41%</td><td>307</td><td>39.5</td><td>117%</td><td>32</td></tr><tr><td>0.55</td><td>125</td><td>1.58</td><td>149.39</td><td>304.83</td><td>74%</td><td>21%</td><td>393</td><td>197.5</td><td>82%</td><td>320</td></tr><tr><td>0.55</td><td>200</td><td>1.58</td><td>200.96</td><td>320.27</td><td>58%</td><td>1%</td><td>471</td><td>316.0</td><td>58%</td><td>469</td></tr><tr><td>0.10</td><td>50</td><td>1.58</td><td>62.22</td><td>280.90</td><td>104%</td><td>47%</td><td>284</td><td>79.0</td><td>108%</td><td>115</td></tr><tr><td>0.25</td><td>50</td><td>1.58</td><td>77.08</td><td>284.80</td><td>99%</td><td>43%</td><td>301</td><td>79.0</td><td>108%</td><td>115</td></tr><tr><td>0.75</td><td>50</td><td>1.58</td><td>109.34</td><td>293.51</td><td>88%</td><td>34%</td><td>340</td><td>79.0</td><td>108%</td><td>115</td></tr><tr><td>1.00</td><td>50</td><td>1.58</td><td>119.85</td><td>296.42</td><td>84%</td><td>31%</td><td>353</td><td>79.0</td><td>108%</td><td>115</td></tr><tr><td>0.55</td><td>50</td><td>1.01</td><td>56.78</td><td>57.33</td><td>106%</td><td>0%</td><td>68</td><td>50.5</td><td>108%</td><td>54</td></tr><tr><td>0.55</td><td>50</td><td>1.10</td><td>57.17</td><td>76.48</td><td>106%</td><td>22%</td><td>84</td><td>55.0</td><td>108%</td><td>64</td></tr><tr><td>0.55</td><td>50</td><td>1.30</td><td>78.97</td><td>166.77</td><td>98%</td><td>34%</td><td>189</td><td>65.0</td><td>108%</td><td>85</td></tr><tr><td>0.55</td><td>50</td><td>1.80</td><td>109.22</td><td>386.64</td><td>88%</td><td>38%</td><td>429</td><td>90.0</td><td>108%</td><td>138</td></tr></tbody></table>

Notes: The above results are based on a price demand elasticity of 0.8 and the corresponding distribution parameters (see table A2). The marginal cost on the legal market, $c^L$, is USD 25 per ounce. The tax revenue in USD *per capita* and *per annum* is given as the product of the difference $p^L - c^L$ with the extensive and intensive margins of consumption. The intensive margin is approximated using Orens et al. (2018) estimates for consumption in Colorado in 2017.
<table><caption>Table A12: Legalization price and resulting demand when the government maximizes tax revenue ($\epsilon = -0.5$)</caption><thead><tr><th rowspan="2">1/N</th><th colspan="4">Policy parameters</th><th colspan="2">Equilibrium prices</th><th colspan="3">Equilibrium demand and revenue</th><th colspan="3">Eviction scenario</th></tr><tr><th>c</th><th>b</th><th>q</th><th>F</th><th>p</th><th>p<sup>L</sup></th><th>ΔD(p, p<sup>L</sup>)</th><th>s<sup>I</sup>(p, p<sup>L</sup>)</th><th>R</th><th>p<sup>L</sup></th><th>ΔD(p<sup>L</sup>)</th><th>R</th></tr></thead><tbody><tr><td>0.55</td><td>50</td><td>1.58</td><td>0.1%</td><td>1000</td><td>122.89</td><td>417.78</td><td>-1%</td><td>38%</td><td>363</td><td>97.79</td><td>60%</td><td>119</td></tr><tr><td>0.55</td><td>25</td><td>1.58</td><td>0.1%</td><td>1000</td><td>106.32</td><td>413.84</td><td>-3%</td><td>41%</td><td>348</td><td>57.84</td><td>65%</td><td>55</td></tr><tr><td>0.55</td><td>125</td><td>1.58</td><td>0.1%</td><td>1000</td><td>172.96</td><td>430.04</td><td>5%</td><td>27%</td><td>412</td><td>217.63</td><td>46%</td><td>286</td></tr><tr><td>0.55</td><td>200</td><td>1.58</td><td>0.1%</td><td>1000</td><td>223.61</td><td>442.94</td><td>12%</td><td>15%</td><td>466</td><td>337.47</td><td>32%</td><td>421</td></tr><tr><td>0.10</td><td>50</td><td>1.58</td><td>0.1%</td><td>1000</td><td>68.37</td><td>404.99</td><td>-7%</td><td>48%</td><td>315</td><td>97.79</td><td>60%</td><td>119</td></tr><tr><td>0.25</td><td>50</td><td>1.58</td><td>0.1%</td><td>1000</td><td>90.64</td><td>410.15</td><td>-5%</td><td>44%</td><td>334</td><td>97.79</td><td>60%</td><td>119</td></tr><tr><td>0.75</td><td>50</td><td>1.58</td><td>0.1%</td><td>1000</td><td>138.60</td><td>421.58</td><td>1%</td><td>35%</td><td>378</td><td>97.79</td><td>60%</td><td>119</td></tr><tr><td>1.00</td><td>50</td><td>1.58</td><td>0.1%</td><td>1000</td><td>154.09</td><td>425.36</td><td>3%</td><td>31%</td><td>393</td><td>97.79</td><td>60%</td><td>119</td></tr><tr><td>0.55</td><td>50</td><td>1.00</td><td>0.1%</td><td>1000</td><td>53.11</td><td>65.03</td><td>59%</td><td>0%</td><td>65</td><td>61.89</td><td>60%</td><td>60</td></tr><tr><td>0.55</td><td>50</td><td>1.10</td><td>0.1%</td><td>1000</td><td>62.68</td><td>106.11</td><td>25%</td><td>24%</td><td>99</td><td>68.08</td><td>60%</td><td>70</td></tr><tr><td>0.55</td><td>50</td><td>1.30</td><td>0.1%</td><td>1000</td><td>94.38</td><td>237.41</td><td>7%</td><td>35%</td><td>213</td><td>80.46</td><td>60%</td><td>90</td></tr><tr><td>0.55</td><td>50</td><td>1.80</td><td>0.1%</td><td>1000</td><td>137.95</td><td>557.87</td><td>-4%</td><td>39%</td><td>475</td><td>111.41</td><td>60%</td><td>141</td></tr><tr><td>0.55</td><td>50</td><td>1.58</td><td>0.2%</td><td>1000</td><td>120.48</td><td>424.13</td><td>-1%</td><td>37%</td><td>372</td><td>111.56</td><td>58%</td><td>140</td></tr><tr><td>0.55</td><td>50</td><td>1.58</td><td>0.5%</td><td>1000</td><td>114.49</td><td>439.87</td><td>0%</td><td>34%</td><td>394</td><td>146.68</td><td>54%</td><td>191</td></tr><tr><td>0.55</td><td>50</td><td>1.58</td><td>1.0%</td><td>1000</td><td>106.15</td><td>461.47</td><td>2%</td><td>30%</td><td>424</td><td>197.33</td><td>48%</td><td>260</td></tr><tr><td>0.55</td><td>50</td><td>1.58</td><td>0.0%</td><td>1000</td><td>126.22</td><td>408.95</td><td>-2%</td><td>39%</td><td>351</td><td>79.00</td><td>62%</td><td>89</td></tr><tr><td>0.55</td><td>50</td><td>1.58</td><td>0.1%</td><td>100</td><td>126.28</td><td>416.18</td><td>-2%</td><td>39%</td><td>357</td><td>81.68</td><td>62%</td><td>94</td></tr><tr><td>0.55</td><td>50</td><td>1.58</td><td>0.1%</td><td>500</td><td>124.77</td><td>416.89</td><td>-1%</td><td>39%</td><td>360</td><td>88.84</td><td>61%</td><td>105</td></tr><tr><td>0.55</td><td>50</td><td>1.58</td><td>0.1%</td><td>1500</td><td>121.01</td><td>418.68</td><td>-1%</td><td>37%</td><td>367</td><td>106.74</td><td>59%</td><td>132</td></tr><tr><td>0.55</td><td>50</td><td>1.58</td><td>0.1%</td><td>2000</td><td>119.13</td><td>419.57</td><td>0%</td><td>36%</td><td>370</td><td>115.68</td><td>58%</td><td>146</td></tr></tbody></table>

Notes: The above results are based on a price demand elasticity of 0.5 and the corresponding distribution parameters (see table A2). The marginal cost on the legal market, $c^L$, is USD 25 per ounce. The tax revenue in USD *per capita* and *per annum* is given as the product of the difference $p^L - c^L$ with the extensive and intensive margins of consumption. The intensive margin is approximated using Orens et al. (2018) estimates for consumption in Colorado in 2017.

<table><caption>Table A13: Legalization price and resulting demand when the government maximizes tax revenue and $q = 0$, for $\epsilon = -0.8$</caption><thead><tr><th rowspan="2">1/N</th><th colspan="2">Policy parameters</th><th colspan="2">Equilibrium prices</th><th colspan="3">Equilibrium demand and revenue</th><th colspan="3">Eviction scenario</th></tr><tr><th>c</th><th>b</th><th>p</th><th>p<sup>L</sup></th><th>ΔD(p, p<sup>L</sup>)</th><th>s<sup>I</sup>(p, p<sup>L</sup>)</th><th>R</th><th>p<sup>L</sup></th><th>ΔD(p<sup>L</sup>)</th><th>R</th></tr></thead><tbody><tr><td>0.55</td><td>50</td><td>1.58</td><td>98.73</td><td>290.60</td><td>91%</td><td>37%</td><td>327</td><td>79.0</td><td>108%</td><td>115</td></tr><tr><td>0.55</td><td>25</td><td>1.58</td><td>82.06</td><td>286.12</td><td>97%</td><td>41%</td><td>307</td><td>39.5</td><td>117%</td><td>32</td></tr><tr><td>0.55</td><td>125</td><td>1.58</td><td>149.39</td><td>304.83</td><td>74%</td><td>21%</td><td>393</td><td>197.5</td><td>82%</td><td>320</td></tr><tr><td>0.55</td><td>200</td><td>1.58</td><td>200.96</td><td>320.27</td><td>58%</td><td>1%</td><td>471</td><td>316.0</td><td>58%</td><td>469</td></tr><tr><td>0.10</td><td>50</td><td>1.58</td><td>62.22</td><td>280.90</td><td>104%</td><td>47%</td><td>284</td><td>79.0</td><td>108%</td><td>115</td></tr><tr><td>0.25</td><td>50</td><td>1.58</td><td>77.08</td><td>284.80</td><td>99%</td><td>43%</td><td>301</td><td>79.0</td><td>108%</td><td>115</td></tr><tr><td>0.75</td><td>50</td><td>1.58</td><td>109.34</td><td>293.51</td><td>88%</td><td>34%</td><td>340</td><td>79.0</td><td>108%</td><td>115</td></tr><tr><td>1.00</td><td>50</td><td>1.58</td><td>119.85</td><td>296.42</td><td>84%</td><td>31%</td><td>353</td><td>79.0</td><td>108%</td><td>115</td></tr><tr><td>0.55</td><td>50</td><td>1.01</td><td>56.78</td><td>57.33</td><td>106%</td><td>0%</td><td>68</td><td>50.5</td><td>108%</td><td>54</td></tr><tr><td>0.55</td><td>50</td><td>1.10</td><td>57.17</td><td>76.48</td><td>106%</td><td>22%</td><td>84</td><td>55.0</td><td>108%</td><td>64</td></tr><tr><td>0.55</td><td>50</td><td>1.30</td><td>78.97</td><td>166.77</td><td>98%</td><td>34%</td><td>189</td><td>65.0</td><td>108%</td><td>85</td></tr><tr><td>0.55</td><td>50</td><td>1.80</td><td>109.22</td><td>386.64</td><td>88%</td><td>38%</td><td>429</td><td>90.0</td><td>108%</td><td>138</td></tr></tbody></table>

Notes: The above results are based on a price demand elasticity of 0.8 and the corresponding distribution parameters (see table A2). The marginal cost on the legal market, $c^L$, is USD 25 per ounce. The tax revenue in USD *per capita* and *per annum* is given as the product of the difference $p^L - c^L$ with the extensive and intensive margins of consumption. The intensive margin is approximated using Orens et al. (2018) estimates for consumption in Colorado in 2017.
<table><caption>Table A14: Legalization price and resulting demand when the government maximizes tax revenue and $q = 0$, for $\epsilon = -0.7$</caption><thead><tr><th rowspan="2">1/N</th><th colspan="2">Policy parameters</th><th colspan="2">Equilibrium prices</th><th colspan="3">Equilibrium demand and revenue</th><th colspan="3">Eviction scenario</th></tr><tr><th>c</th><th>b</th><th>p</th><th>p<sup>L</sup></th><th>ΔD(p, p<sup>L</sup>)</th><th>s<sup>I</sup>(p, p<sup>L</sup>)</th><th>R</th><th>p<sup>L</sup></th><th>ΔD(p<sup>L</sup>)</th><th>R</th></tr></thead><tbody><tr><td>0.55</td><td>50</td><td>1.58</td><td>105.18</td><td>318.35</td><td>76%</td><td>38%</td><td>328</td><td>79.0</td><td>92%</td><td>106</td></tr><tr><td>0.55</td><td>25</td><td>1.58</td><td>88.56</td><td>314.06</td><td>81%</td><td>42%</td><td>310</td><td>39.5</td><td>100%</td><td>30</td></tr><tr><td>0.55</td><td>125</td><td>1.58</td><td>155.60</td><td>331.86</td><td>62%</td><td>23%</td><td>388</td><td>197.5</td><td>70%</td><td>300</td></tr><tr><td>0.55</td><td>200</td><td>1.58</td><td>206.85</td><td>346.39</td><td>48%</td><td>6%</td><td>457</td><td>316.0</td><td>50%</td><td>445</td></tr><tr><td>0.10</td><td>50</td><td>1.58</td><td>63.87</td><td>307.84</td><td>88%</td><td>48%</td><td>284</td><td>79.0</td><td>92%</td><td>106</td></tr><tr><td>0.25</td><td>50</td><td>1.58</td><td>80.71</td><td>312.06</td><td>83%</td><td>44%</td><td>302</td><td>79.0</td><td>92%</td><td>106</td></tr><tr><td>0.75</td><td>50</td><td>1.58</td><td>117.13</td><td>321.48</td><td>73%</td><td>34%</td><td>342</td><td>79.0</td><td>92%</td><td>106</td></tr><tr><td>1.00</td><td>50</td><td>1.58</td><td>128.96</td><td>324.63</td><td>69%</td><td>31%</td><td>356</td><td>79.0</td><td>92%</td><td>106</td></tr><tr><td>0.55</td><td>50</td><td>1.01</td><td>55.18</td><td>55.71</td><td>91%</td><td>0%</td><td>60</td><td>50.5</td><td>92%</td><td>50</td></tr><tr><td>0.55</td><td>50</td><td>1.10</td><td>58.78</td><td>81.12</td><td>90%</td><td>24%</td><td>82</td><td>55.0</td><td>92%</td><td>59</td></tr><tr><td>0.55</td><td>50</td><td>1.30</td><td>83.18</td><td>181.16</td><td>82%</td><td>35%</td><td>189</td><td>65.0</td><td>92%</td><td>78</td></tr><tr><td>0.55</td><td>50</td><td>1.80</td><td>116.83</td><td>424.77</td><td>73%</td><td>39%</td><td>432</td><td>90.0</td><td>92%</td><td>127</td></tr></tbody></table>

Notes: The above results are based on a price demand elasticity of 0.7 and the corresponding distribution parameters (see table A2). The marginal cost on the legal market, $c^L$, is USD 25 per ounce. The tax revenue in USD *per capita* and *per annum* is given as the product of the difference $p^L - c^L$ with the extensive and intensive margins of consumption. The intensive margin is approximated using Orens et al. (2018) estimates for consumption in Colorado in 2017.

<table><caption>Table A15: Legalization price and resulting demand when the government maximizes tax revenue and $q = 0$, for $\epsilon = -0.6$</caption><thead><tr><th rowspan="2">1/N</th><th colspan="2">Policy parameters</th><th colspan="2">Equilibrium prices</th><th colspan="3">Equilibrium demand and revenue</th><th colspan="3">Eviction scenario</th></tr><tr><th>c</th><th>b</th><th>p</th><th>p<sup>L</sup></th><th>ΔD(p, p<sup>L</sup>)</th><th>s<sup>I</sup>(p, p<sup>L</sup>)</th><th>R</th><th>p<sup>L</sup></th><th>ΔD(p<sup>L</sup>)</th><th>R</th></tr></thead><tbody><tr><td>0.55</td><td>50</td><td>1.58</td><td>113.88</td><td>355.81</td><td>62%</td><td>38%</td><td>335</td><td>79.0</td><td>77%</td><td>97</td></tr><tr><td>0.55</td><td>25</td><td>1.58</td><td>97.31</td><td>351.71</td><td>66%</td><td>42%</td><td>319</td><td>39.5</td><td>83%</td><td>27</td></tr><tr><td>0.55</td><td>125</td><td>1.58</td><td>164.07</td><td>368.64</td><td>50%</td><td>26%</td><td>389</td><td>197.5</td><td>59%</td><td>280</td></tr><tr><td>0.55</td><td>200</td><td>1.58</td><td>214.98</td><td>382.30</td><td>39%</td><td>11%</td><td>450</td><td>316.0</td><td>42%</td><td>421</td></tr><tr><td>0.10</td><td>50</td><td>1.58</td><td>66.10</td><td>344.17</td><td>73%</td><td>49%</td><td>289</td><td>79.0</td><td>77%</td><td>97</td></tr><tr><td>0.25</td><td>50</td><td>1.58</td><td>85.61</td><td>348.86</td><td>68%</td><td>45%</td><td>308</td><td>79.0</td><td>77%</td><td>97</td></tr><tr><td>0.75</td><td>50</td><td>1.58</td><td>127.66</td><td>359.27</td><td>58%</td><td>35%</td><td>350</td><td>79.0</td><td>77%</td><td>97</td></tr><tr><td>1.00</td><td>50</td><td>1.58</td><td>141.27</td><td>362.73</td><td>55%</td><td>32%</td><td>364</td><td>79.0</td><td>77%</td><td>97</td></tr><tr><td>0.55</td><td>50</td><td>1.01</td><td>53.56</td><td>54.08</td><td>76%</td><td>0%</td><td>52</td><td>50.5</td><td>77%</td><td>46</td></tr><tr><td>0.55</td><td>50</td><td>1.10</td><td>61.00</td><td>87.50</td><td>74%</td><td>26%</td><td>82</td><td>55.0</td><td>77%</td><td>54</td></tr><tr><td>0.55</td><td>50</td><td>1.30</td><td>88.87</td><td>200.65</td><td>68%</td><td>36%</td><td>192</td><td>65.0</td><td>77%</td><td>72</td></tr><tr><td>0.55</td><td>50</td><td>1.80</td><td>127.09</td><td>476.21</td><td>59%</td><td>39%</td><td>442</td><td>90.0</td><td>77%</td><td>117</td></tr></tbody></table>

Notes: The above results are based on a price demand elasticity of 0.6 and the corresponding distribution parameters (see table A2). The marginal cost on the legal market, $c^L$, is USD 25 per ounce. The tax revenue in USD *per capita* and *per annum* is given as the product of the difference $p^L - c^L$ with the extensive and intensive margins of consumption. The intensive margin is approximated using Orens et al. (2018) estimates for consumption in Colorado in 2017.
<table><caption>Table A14: Legalization price and resulting demand when the government maximizes tax revenue and $q = 0$, for $\epsilon = -0.7$</caption><thead><tr><th rowspan="2">1/N</th><th colspan="2">Policy parameters</th><th colspan="2">Equilibrium prices</th><th colspan="3">Equilibrium demand and revenue</th><th colspan="3">Eviction scenario</th></tr><tr><th>c</th><th>b</th><th>p</th><th>p<sup>L</sup></th><th>ΔD(p, p<sup>L</sup>)</th><th>s<sup>I</sup>(p, p<sup>L</sup>)</th><th>R</th><th>p<sup>L</sup></th><th>ΔD(p<sup>L</sup>)</th><th>R</th></tr></thead><tbody><tr><td>0.55</td><td>50</td><td>1.58</td><td>105.18</td><td>318.35</td><td>76%</td><td>38%</td><td>328</td><td>79.0</td><td>92%</td><td>106</td></tr><tr><td>0.55</td><td>25</td><td>1.58</td><td>88.56</td><td>314.06</td><td>81%</td><td>42%</td><td>310</td><td>39.5</td><td>100%</td><td>30</td></tr><tr><td>0.55</td><td>125</td><td>1.58</td><td>155.60</td><td>331.86</td><td>62%</td><td>23%</td><td>388</td><td>197.5</td><td>70%</td><td>300</td></tr><tr><td>0.55</td><td>200</td><td>1.58</td><td>206.85</td><td>346.39</td><td>48%</td><td>6%</td><td>457</td><td>316.0</td><td>50%</td><td>445</td></tr><tr><td>0.10</td><td>50</td><td>1.58</td><td>63.87</td><td>307.84</td><td>88%</td><td>48%</td><td>284</td><td>79.0</td><td>92%</td><td>106</td></tr><tr><td>0.25</td><td>50</td><td>1.58</td><td>80.71</td><td>312.06</td><td>83%</td><td>44%</td><td>302</td><td>79.0</td><td>92%</td><td>106</td></tr><tr><td>0.75</td><td>50</td><td>1.58</td><td>117.13</td><td>321.48</td><td>73%</td><td>34%</td><td>342</td><td>79.0</td><td>92%</td><td>106</td></tr><tr><td>1.00</td><td>50</td><td>1.58</td><td>128.96</td><td>324.63</td><td>69%</td><td>31%</td><td>356</td><td>79.0</td><td>92%</td><td>106</td></tr><tr><td>0.55</td><td>50</td><td>1.01</td><td>55.18</td><td>55.71</td><td>91%</td><td>0%</td><td>60</td><td>50.5</td><td>92%</td><td>50</td></tr><tr><td>0.55</td><td>50</td><td>1.10</td><td>58.78</td><td>81.12</td><td>90%</td><td>24%</td><td>82</td><td>55.0</td><td>92%</td><td>59</td></tr><tr><td>0.55</td><td>50</td><td>1.30</td><td>83.18</td><td>181.16</td><td>82%</td><td>35%</td><td>189</td><td>65.0</td><td>92%</td><td>78</td></tr><tr><td>0.55</td><td>50</td><td>1.80</td><td>116.83</td><td>424.77</td><td>73%</td><td>39%</td><td>432</td><td>90.0</td><td>92%</td><td>127</td></tr></tbody></table>

Notes: The above results are based on a price demand elasticity of 0.7 and the corresponding distribution parameters (see table A2). The marginal cost on the legal market, $c^L$, is USD 25 per ounce. The tax revenue in USD *per capita* and *per annum* is given as the product of the difference $p^L - c^L$ with the extensive and intensive margins of consumption. The intensive margin is approximated using Orens et al. (2018) estimates for consumption in Colorado in 2017.

<table><caption>Table A15: Legalization price and resulting demand when the government maximizes tax revenue and $q = 0$, for $\epsilon = -0.6$</caption><thead><tr><th rowspan="2">1/N</th><th colspan="2">Policy parameters</th><th colspan="2">Equilibrium prices</th><th colspan="3">Equilibrium demand and revenue</th><th colspan="3">Eviction scenario</th></tr><tr><th>c</th><th>b</th><th>p</th><th>p<sup>L</sup></th><th>ΔD(p, p<sup>L</sup>)</th><th>s<sup>I</sup>(p, p<sup>L</sup>)</th><th>R</th><th>p<sup>L</sup></th><th>ΔD(p<sup>L</sup>)</th><th>R</th></tr></thead><tbody><tr><td>0.55</td><td>50</td><td>1.58</td><td>113.88</td><td>355.81</td><td>62%</td><td>38%</td><td>335</td><td>79.0</td><td>77%</td><td>97</td></tr><tr><td>0.55</td><td>25</td><td>1.58</td><td>97.31</td><td>351.71</td><td>66%</td><td>42%</td><td>319</td><td>39.5</td><td>83%</td><td>27</td></tr><tr><td>0.55</td><td>125</td><td>1.58</td><td>164.07</td><td>368.64</td><td>50%</td><td>26%</td><td>389</td><td>197.5</td><td>59%</td><td>280</td></tr><tr><td>0.55</td><td>200</td><td>1.58</td><td>214.98</td><td>382.30</td><td>39%</td><td>11%</td><td>450</td><td>316.0</td><td>42%</td><td>421</td></tr><tr><td>0.10</td><td>50</td><td>1.58</td><td>66.10</td><td>344.17</td><td>73%</td><td>49%</td><td>289</td><td>79.0</td><td>77%</td><td>97</td></tr><tr><td>0.25</td><td>50</td><td>1.58</td><td>85.61</td><td>348.86</td><td>68%</td><td>45%</td><td>308</td><td>79.0</td><td>77%</td><td>97</td></tr><tr><td>0.75</td><td>50</td><td>1.58</td><td>127.66</td><td>359.27</td><td>58%</td><td>35%</td><td>350</td><td>79.0</td><td>77%</td><td>97</td></tr><tr><td>1.00</td><td>50</td><td>1.58</td><td>141.27</td><td>362.73</td><td>55%</td><td>32%</td><td>364</td><td>79.0</td><td>77%</td><td>97</td></tr><tr><td>0.55</td><td>50</td><td>1.01</td><td>53.56</td><td>54.08</td><td>76%</td><td>0%</td><td>52</td><td>50.5</td><td>77%</td><td>46</td></tr><tr><td>0.55</td><td>50</td><td>1.10</td><td>61.00</td><td>87.50</td><td>74%</td><td>26%</td><td>82</td><td>55.0</td><td>77%</td><td>54</td></tr><tr><td>0.55</td><td>50</td><td>1.30</td><td>88.87</td><td>200.65</td><td>68%</td><td>36%</td><td>192</td><td>65.0</td><td>77%</td><td>72</td></tr><tr><td>0.55</td><td>50</td><td>1.80</td><td>127.09</td><td>476.21</td><td>59%</td><td>39%</td><td>442</td><td>90.0</td><td>77%</td><td>117</td></tr></tbody></table>

Notes: The above results are based on a price demand elasticity of 0.6 and the corresponding distribution parameters (see table A2). The marginal cost on the legal market, $c^L$, is USD 25 per ounce. The tax revenue in USD *per capita* and *per annum* is given as the product of the difference $p^L - c^L$ with the extensive and intensive margins of consumption. The intensive margin is approximated using Orens et al. (2018) estimates for consumption in Colorado in 2017.
<table><caption>Table A16: Legalization price and resulting demand when the government maximizes tax revenue and $q = 0$, for $\epsilon = -0.5$</caption><thead><tr><th rowspan="2">1/N</th><th colspan="2">Policy parameters</th><th colspan="2">Equilibrium prices</th><th colspan="3">Equilibrium demand and revenue</th><th colspan="3">Eviction scenario</th></tr><tr><th>c</th><th>b</th><th>p</th><th>p<sup>L</sup></th><th>ΔD(p, p<sup>L</sup>)</th><th>s<sup>I</sup>(p, p<sup>L</sup>)</th><th>R</th><th>p<sup>L</sup></th><th>ΔD(p<sup>L</sup>)</th><th>R</th></tr></thead><tbody><tr><td>0.55</td><td>50</td><td>1.58</td><td>126.22</td><td>408.95</td><td>48%</td><td>39%</td><td>351</td><td>79.0</td><td>62%</td><td>89</td></tr><tr><td>0.55</td><td>25</td><td>1.58</td><td>109.70</td><td>405.04</td><td>51%</td><td>43%</td><td>336</td><td>39.5</td><td>67%</td><td>25</td></tr><tr><td>0.55</td><td>125</td><td>1.58</td><td>176.18</td><td>421.13</td><td>39%</td><td>29%</td><td>399</td><td>197.5</td><td>48%</td><td>260</td></tr><tr><td>0.55</td><td>200</td><td>1.58</td><td>226.76</td><td>433.97</td><td>30%</td><td>16%</td><td>452</td><td>316.0</td><td>34%</td><td>399</td></tr><tr><td>0.10</td><td>50</td><td>1.58</td><td>69.26</td><td>395.67</td><td>59%</td><td>50%</td><td>302</td><td>79.0</td><td>62%</td><td>89</td></tr><tr><td>0.25</td><td>50</td><td>1.58</td><td>92.55</td><td>401.03</td><td>54%</td><td>46%</td><td>321</td><td>79.0</td><td>62%</td><td>89</td></tr><tr><td>0.75</td><td>50</td><td>1.58</td><td>142.60</td><td>412.89</td><td>45%</td><td>36%</td><td>366</td><td>79.0</td><td>62%</td><td>89</td></tr><tr><td>1.00</td><td>50</td><td>1.58</td><td>158.75</td><td>416.82</td><td>42%</td><td>33%</td><td>382</td><td>79.0</td><td>62%</td><td>89</td></tr><tr><td>0.55</td><td>50</td><td>1.01</td><td>53.84</td><td>54.37</td><td>62%</td><td>0%</td><td>48</td><td>50.5</td><td>62%</td><td>42</td></tr><tr><td>0.55</td><td>50</td><td>1.10</td><td>64.21</td><td>96.67</td><td>60%</td><td>29%</td><td>83</td><td>55.0</td><td>62%</td><td>50</td></tr><tr><td>0.55</td><td>50</td><td>1.30</td><td>96.96</td><td>228.35</td><td>53%</td><td>37%</td><td>200</td><td>65.0</td><td>62%</td><td>66</td></tr><tr><td>0.55</td><td>50</td><td>1.80</td><td>141.64</td><td>549.15</td><td>45%</td><td>40%</td><td>463</td><td>90.0</td><td>62%</td><td>108</td></tr></tbody></table>

Notes: The above results are based on a price demand elasticity of 0.5 and the corresponding distribution parameters (see table A2). The marginal cost on the legal market, $c^L$, is USD 25 per ounce. The tax revenue in USD *per capita* and *per annum* is given as the product of the difference $p^L - c^L$ with the extensive and intensive margins of consumption. The intensive margin is approximated using Orens et al. (2018) estimates for consumption in Colorado in 2017.
<table><caption>Table A16: Legalization price and resulting demand when the government maximizes tax revenue and $q = 0$, for $\epsilon = -0.5$</caption><thead><tr><th rowspan="2">1/N</th><th colspan="2">Policy parameters</th><th colspan="2">Equilibrium prices</th><th colspan="3">Equilibrium demand and revenue</th><th colspan="3">Eviction scenario</th></tr><tr><th>c</th><th>b</th><th>p</th><th>p<sup>L</sup></th><th>ΔD(p, p<sup>L</sup>)</th><th>s<sup>I</sup>(p, p<sup>L</sup>)</th><th>R</th><th>p<sup>L</sup></th><th>ΔD(p<sup>L</sup>)</th><th>R</th></tr></thead><tbody><tr><td>0.55</td><td>50</td><td>1.58</td><td>126.22</td><td>408.95</td><td>48%</td><td>39%</td><td>351</td><td>79.0</td><td>62%</td><td>89</td></tr><tr><td>0.55</td><td>25</td><td>1.58</td><td>109.70</td><td>405.04</td><td>51%</td><td>43%</td><td>336</td><td>39.5</td><td>67%</td><td>25</td></tr><tr><td>0.55</td><td>125</td><td>1.58</td><td>176.18</td><td>421.13</td><td>39%</td><td>29%</td><td>399</td><td>197.5</td><td>48%</td><td>260</td></tr><tr><td>0.55</td><td>200</td><td>1.58</td><td>226.76</td><td>433.97</td><td>30%</td><td>16%</td><td>452</td><td>316.0</td><td>34%</td><td>399</td></tr><tr><td>0.10</td><td>50</td><td>1.58</td><td>69.26</td><td>395.67</td><td>59%</td><td>50%</td><td>302</td><td>79.0</td><td>62%</td><td>89</td></tr><tr><td>0.25</td><td>50</td><td>1.58</td><td>92.55</td><td>401.03</td><td>54%</td><td>46%</td><td>321</td><td>79.0</td><td>62%</td><td>89</td></tr><tr><td>0.75</td><td>50</td><td>1.58</td><td>142.60</td><td>412.89</td><td>45%</td><td>36%</td><td>366</td><td>79.0</td><td>62%</td><td>89</td></tr><tr><td>1.00</td><td>50</td><td>1.58</td><td>158.75</td><td>416.82</td><td>42%</td><td>33%</td><td>382</td><td>79.0</td><td>62%</td><td>89</td></tr><tr><td>0.55</td><td>50</td><td>1.01</td><td>53.84</td><td>54.37</td><td>62%</td><td>0%</td><td>48</td><td>50.5</td><td>62%</td><td>42</td></tr><tr><td>0.55</td><td>50</td><td>1.10</td><td>64.21</td><td>96.67</td><td>60%</td><td>29%</td><td>83</td><td>55.0</td><td>62%</td><td>50</td></tr><tr><td>0.55</td><td>50</td><td>1.30</td><td>96.96</td><td>228.35</td><td>53%</td><td>37%</td><td>200</td><td>65.0</td><td>62%</td><td>66</td></tr><tr><td>0.55</td><td>50</td><td>1.80</td><td>141.64</td><td>549.15</td><td>45%</td><td>40%</td><td>463</td><td>90.0</td><td>62%</td><td>108</td></tr></tbody></table>

Notes: The above results are based on a price demand elasticity of 0.5 and the corresponding distribution parameters (see table A2). The marginal cost on the legal market, $c^L$, is USD 25 per ounce. The tax revenue in USD *per capita* and *per annum* is given as the product of the difference $p^L - c^L$ with the extensive and intensive margins of consumption. The intensive margin is approximated using Orens et al. (2018) estimates for consumption in Colorado in 2017.