The basic version goes like this:
Mylan is the company that produces the EpiPen, a device that injects a measured dose of epinephrine when someone has a severe allergic reaction. The company acquired it in from Merck, which bought the rights for the drug years earlier from another company.
The drug is used to treat a variety of infections and other diseases. Turing bought the rights to the drug from a company, which bought the rights to the drug from another company, which bought the rights to the drug from another company, … Why did Mylan increase the price of the EpiPen?
Why did Turing increase the price of the drug Daraprin? The companies control exclusive rights to the drug and the demand for the drugs are highly inelastic. First, by having exclusive rights over the drugs and with little if any competition, they possess monopoly power.
This means they can act as price makers rather than price takers. Second, as I explained to my microeconomics students today, demand for the drugs is inelastic because there are few substitutes to them and they are necessary. This means that consumers will not or cannot be very responsive to large changes in prices.
If you are subject to severe allergic reactions, you probably will not forgo the drug if its price increases. You will grumble and complain but buy it anyway. Thus, the combination of monopoly power and inelastic demand makes raising prices economically rational.
The drug companies and other commentator point to other reasons for high drug prices.
Some argue that the patent system and long and costly regulatory approval processes are to blame. Drug company executives say that the system is to blame. Everyone has to take a cut, such as pharmacy-benefits managers. These benefits managers, in turn, are blaming drug prescription services and health insurers.
To be sure, the problem is complicated.
What is a reasonable price for a life-saving drug? These companies also employ thousands of workers and their stocks are part of savings, retirement and other investment portfolios for many people.
If we mandate lower prices for drugs, then what happens to drug company employees and investors? If drug companies can raise prices, and justify the price increases on economic grounds, then should they? Economic considerations are important, but they are not the only values that matter.
Is it fair to ask patients to pay percent more for a lifesaving drug? Fairness can be more difficult to justify than economic rationale. But we can simplify things. When our expectations are met, then we have little grounds for arguing unfairness.
However, when expectations are not met, people typically feel justified in claiming unfairness. While most people can expect gradual increases in prices, for instance due to inflation, there is no reasonable argument anyone can make that would convince me that consumers would expect a percent increase for Daraprim or a percent increase for the EpiPen in a relatively short period of time.
If drug companies want to increase prices more than what consumers expect, then the companies need to speak directly to consumers and change their expectations.Informative Speech on Prisoner's Dilemma. Topics: The Prisoner, I heard the prisoner’s dilemma from my economics class’s teacher and later I found out this dilemma almost happen every day and everywhere, so I’d .
Talking Points: Joan Scott on Free Speech. how we arrived at where we are today is very informative. There have always been, and always will be, alternatives. Natural Sciences. How Our Brains Operate. By John J. Hopfield. The Prisoner’s Dilemma. By Freeman J. Dyson.
Informative Speech on Prisoner's Dilemma. Topics: The Prisoner, I heard the prisoner’s dilemma from my economics class’s teacher and later I found out this dilemma almost happen every day and everywhere, so I’d like to inform this concept to all of you.
Theory of mind is the ability to attribute mental states—beliefs, intents, desires, emotions, knowledge, etc.—to oneself, and to others, and to understand that others have beliefs, desires, intentions, and perspectives that are different from one's own.
Theory of mind is crucial for everyday human social interactions and is used when analyzing, judging, and inferring others' behaviors. On the other hand, I used "prisioner's dilemma" because it explicitly had "dilemma" in his name but I was certainly not restraining to it (it's absurd) but to game theory in general or, if you like me to be more precise, to the iterating prisioner's dilemma family of games.
Essay about Organ Transplants for Prisoners; Essay about Organ Transplants for Prisoners. Words Oct 4th, Informative Speech Organ Donation and Transplant Essay Words | 5 Pages. An Ethical Dilemma Essay Words | 4 Pages.