https://www.statnews.com/2020/01/12/venture-capitalist-alexis-borisy-bring-down-drug-prices/ … Does anybody understand why this business model hasn't been done before? (Develop new drugs that mimic the effects of other approved drugs; sell them at lower prices; make a profit by gaining market share.)
But how do they enforce that monopoly totally? I get that high barriers to entry are a thing, but I wouldn’t expect the regulatory barriers I know about to be high enough to fully protect against all price competition.
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Drug pricing is opaque and in a few instances (Hep C) there have been price wars.
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Price competition is an iterated prisoner's dilemma; if you "defect" (lower price too far), competitors will defect back, destroying any profits you would have gotten from increased market share. Repeat across many independently priced drugs, and establishing cooperation is easy.
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