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Under certain conditions, price discrimination that results in a higher price for US consumers can increase their net utility. Example: HIV medication is sold
by kszx 12y ago
Under certain conditions, price discrimination that results in a higher price for US consumers can increase their net utility.
Example: HIV medication is sold at much lower prices in Africa. If prices in Africa were increased to the levels currently seen in the US, revenues on the African market would be reduced to approx. zero. If prices in the US were decreased to the levels currently seen in Africa, most R&D efforts would have to be stopped.
(This is just a response to the comment. It does not necessarily relate to the article.)
- visarga 12y ago> most R&D efforts would have to be stopped. Most R&D efforts sponsored by private companies. Don't write the whole world off. There are plenty of funds and scientists that don't work for the private sector. Sometimes greed promotes progress, other times it hinders it.