It’s always a liability in any industry to not charge the most you can get away with. Either in terms of what people will pay or a few dollars less than competitors. Prices are always as high as they’ll ever be in order to compete. In one way or another.
Say you have to sell your Porsche in order to pay for your bone breaking (because of the evil capitalist doctors). There are 10 other models on sale in your town. All the same color with about the same number of miles. You’re going to look at the the other ones sell for and sell it for slightly less than that. And if you’re not willing to sell that car or the price is too low you will not sell it at all. Because you want a higher return on whatever thing you’re selling.
It seems that making prescription drug commercials illegal will just make consumers less informed (they have to get it from their doctor anyway) and it will cartelize the industry against competition that results from advertisements. The products come in as a result of demand, they don’t create demand. People don’t demand to lose money or be sick (unless they can forego the first in order to take the services via other younger healthier tax payers).
Indeed. Often competition in advertising is also the best way to deflate the claims of a disingenuous competitor.
-Jon
I’m in a discussion with an anti-capitalist and now we got to the health industry and monopoly.
He sais the only authorised distributor of drugs produced by A and B decided to only import A’s version of a certain drug, which does the same thing as B’s but is more expensive.
Then he wouldn’t be the only authorised distributor for very long, would he?
A monoply on distribution is not a capitalistic concept, its a socialist one. Your friend is so saturated in socialist thought that he can’t envision anything but it. He is attacking a feature of the very system he endorses!
He’s the only distributor that A and B use, just like Grunding had a distributor of choice in this article: http://www.rothbard.org/story/2440
It seems to me it’s an anomaly of the market. By only selling A’s product in our country he’s doing B a lot of harm.