7 ms·
Competition is what drives down costs in a market. If costs are going out of control, perhaps there is something in the current system that is preventing compet
by zip1234 7y ago
Competition is what drives down costs in a market. If costs are going out of control, perhaps there is something in the current system that is preventing competition? Lack of price transparency?
- fjp 7y agoLack of price transparency is an issue. There's waaay too many misdirections and misaligned incentives between the price a consumer pays for a drug and the manufacturer's pricing. But again, market-based solutions are just not appropriate for essential health care. You would pay ANYTHING to not die - there's no price elasticity of demand. Every other developed country has figured out that this is simply immoral.
- conanbatt 7y agoCompetition drives down profits, not necessarily costs. If you passed a law that funds pharma startups to produce drugs, you would reduce profits and increase costs (through taxes). Cost goes down with increased productivity. Competition sometimes brings that, sometimes it doesn't. Economics can be complex!