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TORONTO — Ontario’s Liberal government has missed an opportunity to create a competitive recreational marijuana market with its plans to restrict sales to provincially run stores, according to a new analysis from a think-tank.

The analysis by the C.D. Howe Institute, to be released Wednesday, faults the province for its refusal to allow the private sector involvement in pot retailing.

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“More competition between businesses would constrain operating costs and keep prices low,” the institute says in its report. “Lower prices in the legal market would make it more likely to be competitive with the existing black market.”

The report also faults the province for its plans — once the federal government actually legalizes recreational cannabis likely this summer — to severely restrict the number of outlets that will be selling pot. The province has said 40 stores will be in place initially, with a total of 150 by 2020.