3 ms·
I think you could make a case that charging the highest price for something that the market will bear corrects an inefficiency in the market. http://www.invest
by johncip 9y ago
I think you could make a case that charging the highest price for something that the market will bear corrects an inefficiency in the market.
http://www.investopedia.com/terms/i/inefficientmarket.asp http://www.investopedia.com/terms/i/inefficientmarket.asp
It's not that they started producing more units, it's that some folks (the ones using the drugs) were taking advantage of a market inefficiency (the insufficiently low price) which when corrected, meant greater returns for Shkreli et al.
Just as when a "retail" day trader hits on a system that enables them to make a large amount of money, they're taking advantage of an inefficiency, and, in a way, helping to correct it.
It's not pretty, but being ugly doesn't make it inaccurate.
- forgotmysn 9y agobut we're talking about a monopoly. a market inefficiency only occurs if there is competition, a more efficient alternative.