Re:Airlines Are Just Banks Now
by AnthonyMouse on Monday September 25, 2023 @01:12AM
(#37639861)
It leads to shortages in a competitive market and lower margins in an uncompetitive market.
But if you have an uncompetitive market on purpose as a result of patents meant to increase margins to fund R&D, a law capping prices is a screw up because it was meant to be the way it was.
Whereas if you have an uncompetitive market unintentionally as a result of some other regulatory failure, a law capping prices is a screw up because you're not actually lowering margins from 2500% to 1000%, you're just raising them from the ~5% they ought to be to 1000% instead of 2500%, which is still bad.
Or lower margins. After you spent millions/billions on R&D, testing and approval, why would you purposefully decrease your product just because your margin now is not 2500% but 1000%?
Of course this might affect your willingness to invest into developing new drugs in the future