Tag: Price discrimination

Price Discrimination in Pharmaceutical Companies: The Method to the “Madness”

| April 2, 2012 | 1 Comment
Price Discrimination in Pharmaceutical Companies: The Method to the “Madness”

Pharmaceutical companies, or what critics call “big pharma,” are often condemned for charging prices above marginal cost and price discriminating between different countries (calculating each country’s ability to pay). These practices lie at the heart of feuds such as compulsory licensing, a strategy employed by countries to obtain generic drugs. However, the economics of price discrimination demands a closer look.

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