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Joined 1 year ago
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Cake day: June 13th, 2023

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  • Many monopolies form by first using a dominant market position to sell at a price no competitor can afford to match. Choice has already been removed before the “competition” folds or pulls out of the market. The consequences don’t happen overnight; you feel the squeeze before the “true” monopoly emerges. Amazon isn’t going to sell at a cheaper price once their competitors go out of business out of the kindness of their hearts.

    Further, high consumer price is just one form monopoly power takes. Reduced labor power, wages, and worse working conditions are other important concerns, in addition to removing product variety and innovation incentive.









  • Great, and where local is the best choice they should do that. But nobody can seriously argue that reducing the ability of government to shop around for the best cost/quality balance is a good thing. It’s not like the only options are buy everything American or everything from China. I’d like qualified experts making that decision, not legislators.

    You create bad incentives if you artificially reduce competition like this. Not every good or service will have tons of American choices, so you end up with a handful of companies who know the government has no other choice.






  • Two points about R&D costs:

    First, they aren’t just trying to make up what they spent on this treatment, but others that failed during research/trials. There’s a lot of them the general public will never hear about, and pharmas generally don’t like to bring attention to their failures. Part of that is many shareholders are morons who don’t understand how science works.

    Second, the costs can get fuzzier for larger companies who in-house much of the R&D process, since the costs get shared among many programs. Properly attributing spend in that case can be a serious challenge.

    All that said, they’ve clearly seen an opportunity to rake it in with this trendy drug and are charging way more than they need to.