Free Republic
Browse · Search
News/Activism
Topics · Post Article

To: Torie
The way to break down a two tier pricing system because of a monopsony in one place but not another, is with trade. Simple really. But what is really needed is the Torie plan, which involves the drug companies being proscribed from charging higher prices in the US, except to the extent attributed to cost savings from volume sales.

There's no need to ban differential pricing when allowing free trade will do the job just as handily. Consumers will, acting by the unbribeable, unbreakable, uncooptable laws of economics, use arbitrage to break down the pricing differentials. When that happens we will find that, just as in the market for computer chips, the era of high-tech drug research and development will begin for real.

50 posted on 01/28/2005 9:41:25 PM PST by BlazingArizona
[ Post Reply | Private Reply | To 26 | View Replies ]


To: BlazingArizona

Not when the government monopsony buyers don't resell.


53 posted on 01/28/2005 9:52:05 PM PST by Torie
[ Post Reply | Private Reply | To 50 | View Replies ]

To: BlazingArizona
use arbitrage to break down the pricing differentials

absolutely correct. Please read post 58 too.

60 posted on 01/28/2005 11:30:57 PM PST by staytrue
[ Post Reply | Private Reply | To 50 | View Replies ]

Free Republic
Browse · Search
News/Activism
Topics · Post Article


FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson