Quote:
Originally posted by Mmmm, Burger (C.J.)
I am too, but drug companies aren't facing true "market" incentives right now, so to say that changing the current regulation is pareto inferior is not a forgone conclusion.
I don't think it would be too unreasonable , if one has a national Rx drug plan, to offer a price that is equal to an exchange-rate adjusted average price in the 7 largest industrial countries other than the US.
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You may be right for particular drugs made by particular companies, but to say drug companies in general are not facing true markets is ridiculous, and even for those drugs where they have a monopoly, you have not shown evidence of predatory pricing (I am not convinced that because they charge less in Canada they are engaged in predatory pricing in the States).
Setting aside my discomfort with regulating pricing in general, your exchange rate plan is interesting, but presumably would raise prices in the 7 other countries, which could have the effect of lower aggregate demand.
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