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There is still incentive to have high prices, even if the organization is "non-profit" or governmental. At some point, that money reaches someone who has the au
by cookiecaper 11y ago
There is still incentive to have high prices, even if the organization is "non-profit" or governmental. At some point, that money reaches someone who has the authority to spend it, and that person is always going to want more money and be incentivized to get it. This happens whether the beneficiary is a government appointee or not.
A free market is generally considered superior because the element of competition keeps the vendor(s) honest. If it were illegal for others to make drugs, I would expect the result to be much like it is now for companies that hold patents on drugs; charge as much as possible for as long as possible, until you're forced to bring the price down by competitors.
Anywhere you find exorbitant prices you'll find high barriers to entry. These are specifically designed to keep competition minimal and make it so once competition does clear the hurdle and enter the market, they won't have much interest in shaking up the existing structure too much. The government saying "only we can make drugs now" is a pretty high barrier to entry.
- mercurial 11y ago> A free market is generally considered superior because the element of competition keeps the vendor(s) honest. If it were illegal for others to make drugs, I would expect the result to be much like it is now for companies that hold patents on drugs; charge as much as possible for as long as possible, until you're forced to bring the price down by competitors. Why would you expect that? If you take, eg, the French railways, they have for a long time charged reasonable prices for a good service with very good territorial coverage. Similarly, state-owned energy monopolies generally don't gouge out their customers. As for the "honesty" of big pharma, are we talking about the same entities repeatedly caught hiding unfavorable studies or plainly bribing doctors?