tag:blogger.com,1999:blog-17946516.post671588289645624308..comments2023-08-20T11:52:59.561+01:00Comments on International Network for Ethical Issues in Resource Allocation: The Ghost in the MachineDavid Hunterhttp://www.blogger.com/profile/10511387997239132302noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-17946516.post-70651798960315826882007-05-19T12:17:00.000+01:002007-05-19T12:17:00.000+01:00Fair point, I guess it isn't inevitable because th...Fair point, I guess it isn't inevitable because the market will only tolerate some behaviour and this looks like the sort of behaviour it shouldn't tolerate. On the other hand it is presently tolerating it which is why noise about it needs to be made.<BR/><BR/>Daniel said: "However, this is actually not what happens, because research consistently shows that consumers deem drugs available by prescription to be more effective, and therefore both want them more than OTC drugs and are willing to pay more for them. The lower volume in sales of the prescription drugs as compared to OTC drugs in the same therapeutic class is made up for many times over by the increased rents captured by the more expensive prescription drugs."<BR/><BR/>This is an excellent point, any idea whether converted drugs (ie prescription only medication which has become available over the counter fare differently?<BR/><BR/>"But, sadly, you may well be right. A professor of mine, commenting on a related phenomenon, remarked, "Every time I think we've hit the bottom of the barrel, I find something even more depraved.""<BR/>Having just been at a conference on public health ethics and listened to some truely frightening papers I have to agree with your professor!David Hunterhttps://www.blogger.com/profile/10511387997239132302noreply@blogger.comtag:blogger.com,1999:blog-17946516.post-12633174226738753322007-05-04T05:15:00.000+01:002007-05-04T05:15:00.000+01:00David,I'm not certain that the practice of ghost-w...David,<BR/><BR/>I'm not certain that the practice of ghost-writing is an inevitable consequence of market-driven health care, though admittedly it is not altogether unexpected given that the industry is literally the most efficient rent-seeker (and capturer) in the history of the corporation.<BR/><BR/>Still, even if it is only the prospect of rents that motivates firm behavior, the market may well refuse to bear certain practices. For example, one might think that drug companies would want new drugs to be available in the U.S. OTC rather than by prescription only, because presumably greater volume of sales would occur with the former.<BR/><BR/>However, this is actually not what happens, because research consistently shows that consumers deem drugs available by prescription to be more effective, and therefore both want them more than OTC drugs and are willing to pay more for them. The lower volume in sales of the prescription drugs as compared to OTC drugs in the same therapeutic class is made up for many times over by the increased rents captured by the more expensive prescription drugs.<BR/><BR/>The point of all of this is to suggest that the political economy may well exert downward pressure on some rent-seeking practices. <BR/><BR/>But, sadly, you may well be right. A professor of mine, commenting on a related phenomenon, remarked, "Every time I think we've hit the bottom of the barrel, I find something even more depraved." <BR/><BR/>In any case, thanks for the link!Epicurushttps://www.blogger.com/profile/13569076139272049564noreply@blogger.com