It is a little weak sticking with the individuals. But look at Bob's incentives: If you're Bob -- the duly-elected representative of the people's republic of w

It is a little weak sticking with the individuals. But look at Bob's incentives: If you're Bob -- the duly-elected representative of the people's republic of west brokistan -- then you've got the following calculation: - either you let Jim keep turning out off-brand tamiflu and (hypothetically) thereby saving hundred-k to millions of lives ("didn't mess with a good thing") - or you shut Jim down, then have the fun task of explaining to your constituents that it's really better that they no longer be able to afford those drugs ...at which point either: - Bob uses an argument like Joe's argument; this isn't going to be convincing to the public @ large b/c: -- if they were buying Jim's stuff and now they can't the same counter-arguments as in the individual case applies -- if they weren't buying Jim's stuff they now can't if they need it in the future -- additionally Bob is taking away local industry and local autonomy so on in favor of foreign interests (which rarely fares well in any country) ...which is awesome for getting reelected; or maybe Bob tries the realpolitik strategy and explains: - oh sorry I couldn't negotiate a good (i) option which is why we're forced picking between (ii) and (iii) - oh but also sorry (oh, so very sorry) we can't pick (ii) even though we'd like to b/c doing so risks some terribly nasty trade sanctions that we just can't afford right now ...which is honest but makes Bob look so completely useless I wouldn't like Bob's re-election odds with this approach, either. So I think given the incentives Bob's likely choices are obvious, assuming he's an elected official of some sort; a more dictatorial head honcho might make a different decision. Whether someone more free to take a stab at long-term utility maximization ought to let Jim keep operating or not is pretty much a function of trade sanctions and so on first and only after that some calculation about "what amount of drugs will we be able to buy in the future that cover what % of what conditions will be significant in the future"?