McKinsey optimized the business strategy to maximize profit. The strategy is locally optimal but a net negative at society scale.
I always puzzle why some economists oppose the basic idea of regulating drugs. Layman like us won't have the prior knowledge to tell the difference between snake oil and effective treatment. Drug maker won't have the incentive to conduct expensive randomized trials. Are we going to tell by reading Amazon reviews?
McKinsey optimized the business strategy to maximize profit. The strategy is locally optimal but a net negative at society scale.
I always puzzle why some economists oppose the basic idea of regulating drugs. Layman like us won't have the prior knowledge to tell the difference between snake oil and effective treatment. Drug maker won't have the incentive to conduct expensive randomized trials. Are we going to tell by reading Amazon reviews?