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From: sykora@csd2.UUCP (Michael Sykora)
Newsgroups: net.politics.theory
Subject: Re: The free market (and lemons)
Message-ID: <4340010@csd2.UUCP>
Date: Fri, 13-Dec-85 21:55:00 EST
Article-I.D.: csd2.4340010
Posted: Fri Dec 13 21:55:00 1985
Date-Received: Mon, 16-Dec-85 19:25:40 EST
References: <589@calgary.UUCP>
Organization: New York University
Lines: 34

>/* bob@pedsgd.UUCP (Robert A. Weiler) / 10:48 am  Dec 12, 1985 */

>. . .  In other words, it is more profitable to create a drug
>which allows patients to live with their condition than one which prevents
>or permanently remedies it with few applications. This seems intuitively
>clear.

More profitable for which companies and individuals? More profitable when?
The profitability of inventing a cure as opposed to that of inventing a
treatment depends on many factors:  the relative expense of each, the
probability of success of each, whether or not a cure has already been
invented (in which case, if the cure is not very expensive, development
of a treatment would probably not be profitable), etc.

If people want a cure more than a treatment, there will be a profit
in it for somebody, though perhaps, for a company that manufactures/
markets the treatment, not a net profit.

> However, I submit it is in the best interest of the overwhelming
>majority of the citizens that cures and vaccines be invented.

That depends on the costs of development, production of the cure/vaccine
and on how happpy people are with the treatment.  In many situations,
people would rather continue treatment than go into deep debt to obtain
the cure/vaccine.  It also depends on how suceptible to the disease
people perceive themselves to be.

>Therefore,
>this seems to me to be an appropriate arena for government.

What about the question of how competent government is likely to be in
dealing with the problem, and how much it will cost?

Michael Sykora