Hmm, so the idea is that a company will actually sell below the price you'd later see in a competitive market? That's an interesting proposition, but it doesn't

Hmm, so the idea is that a company will actually sell below the price you'd later see in a competitive market? That's an interesting proposition, but it doesn't hold water. Is it possible in theory? I doubt it, but I can't disprove it off the top of my head. But it just doesn't happen in the pharma industry. When a drug patent runs out, generics come out and the price drops dramatically, every single time. It is true that name brand prices do actually increase when patents expire, but not the generic prices, and that means that quantity supplied will certainly increase once generics are introduced.