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Why Are Drugs More Profitable Than Vaccines?
Michael Kremer, Christopher M. Snyder, published by the National Bureau of Economic Research July 16, 2003
Working paper. Excerpt: [T]here is less asymmetric information to prevent the firm from extracting consumer surplus with drug treatments than with vaccines. We prove that, due to this aspect of pharmaceutical pricing, the ratio of drug-treatment to vaccine revenue can be arbitrarily high ...
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