Administration &Society, Ahead of Print.
Many governments provide goods and services that are deemed too sensitive for the private sector to deliver. This places public administrators in the difficult situation of having to sell products while also shaping consumer demand. Government agencies in Canada found themselves in this situation when the country legalized cannabis in 2018. Our findings suggest they responded with a demarketing approach, attempting to limit and shape, rather than increase, consumer demand. We conclude this demarketing strategy hinders public agencies’ ability to displace competitors in the illicit market, a key public policy objective.