No, this is not an 'ideal' market. Mylan was able to exert significant control over the demand by getting recommendations changed (you now need two EpiPens, rather than one), and getting EpiPens required in many schools, etc.

I can't imagine anyone recommending having less than two pens: what if one fails due to a manufacturing flaw, user error (e.g. it would suck to fumble it in the heat of action and drop it in an unacceptable location), etc.? And isn't a second dose sometimes needed?

I don't know the details, but I do know my sister always carried two for her eldest (past tense because he's now in college and presumably carrying them himself now).

And state legislation mandating that medic units carry multiple EpiPens.

Medic units, that have trained personnel, that have all the equipment to draw up Epi from a $3 vial themselves, who are already on scene.

This leads to my county alone having to throw away $130,000/yr of EpiPens that don't get used before they expire. Because the state legislates that we're required to carry them.

What state is that? We just carry epi...

Maybe but so are many other essential medications. Is the subsidisation by the Goverment the answer?

If the government had to subsidise them, I bet they'd make sure the prices were reasonable.

This story is about the substantial amount of money that Medicaid (subsidized US health care) spends on Epipens.

Unless I'm very mistaken, making more EpiPens shouldn't raise the price per EpiPen.