The Monopoly Markup

Ever wonder why pharmaceuticals are so expensive? In this video, we show how low elasticity of demand results in monopoly markups. This is especially the case with goods that involve the “you can’t take it with you” effect (for example, people with serious medical conditions are relatively insensitive to the price of life-saving drugs) and the “other people’s money” effect (if third parties pay for the medicine, people are less sensitive to price).
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[@Ytremz]

Perfectly explained.

[@nacoran]

There is a practice where some people will buy that flight to S.F. and just never make the connection. Of course, this upsets both the airline and the T.S.A., since they don't like the idea that a passenger might not be on the same flight as their baggage for obvious reasons. It seems this would be a good place for a little government regulation (simply requiring the airlines to allow people to purchase any leg of a trip at the cost of the total trip would allow passengers to notify the airlines of their intent, allowing the TSA to make sure all passengers and baggage stay together, giving passengers a non-monopoly price, and allowing airlines to sell that spare leg to at least make up part of the monopoly gouging they would have otherwise made. (Although the airlines would argue this would drive them out of business- I suspect they would adapt- it might however put some economic pressure on the hub system.)

[@abhiramismahesh5156]

Thank uu sirr

[@loose_leaf_lofi]

This video sums up so much of what's wrong with our economic system. It's absolutely disgusting

[@RiaMenon]

WOW :)

[@r.a.s1210]

you can't take it with u effect: One more way to show what a messed up society we live in. Makes me sick to think about how easy it is for human beings to take advantage of one another all the while looking at themselves as messiah's- in the name of profit, disgusting.

[@alensaric1082]

That life-saving medicine wouldn't exist without that "sick" person who spent hundreds of millions of dollars, and years of building a company to make it.

[@jaideepsingh4395]

@@alensaric1082 thanks for talking some sense into her!

[@jasonleelawlight]

It doesn’t matter if you like it or not, this is how the world makes progress in terms of economics, science and technology and many other things. If you don’t let firms make money, then they won’t give you the products and services you need PERIOD