Technology drives consumers to irrationality
Technology, and the development of technological products, undermine free market mechanisms. One, of many, reasons for this is the problems consumers face in making a choice about purchases. Does this affect the assumption that consumers are able to make informed and rational decisions, which is required by the argument in favour of free markets? (more…)
Drug patents: inefficient R & D funding
Patents allow pharmaceutical companies to sell drugs at several times the price they would be able to get in a competitive market. Only a small proportion of the extra money spent by the public goes into research and development (R & D), despite the latter being the supposed benefit of the higher prices. (more…)
Bad incentives in drug development
The pharmaceutical industry would like you to believe that they fund the expensive development of new drugs, they get patents in return, and this provides a nice efficient market driven mechanism for developing new drugs. There are many things wrong with this picture: (more…)
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