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In the absence of compulsory production and under the current intellectual property rights scheme, price ceilings cause shortages all other things held equal.
by metiscus 6y ago
In the absence of compulsory production and under the current intellectual property rights scheme, price ceilings cause shortages all other things held equal.
- ajsharp 6y agoIn a more normal market with fixed supply, such as rent control, that's true. Much less so in a monopoly market with largely intellectual property.
- metiscus 6y agoIt's not just intellectual property - it's a capital intensive bioengineering project with probably a half billion or so capex and even more for an outsider to bootstrap.
- ajsharp 6y agoFair enough. Still, there are no supply dynamics here where a price ceiling would cause supply issues.