A Broken Market

The pharmaceutical giant, Pfizer, watched its main source of revenue and profits, Lipitor, lose its patent protection this week, and now faces competition from generic equivalents. In 2010 Lipitor was the second highest selling prescription drug with $5.2 billion in sales in the U.S. alone. (source: Drugs.com). Now, in the next year, prices of . . . → Read More: A Broken Market

Jittery regimes fix prices

The puzzle

All of us are now curiously thinking about the abrupt phase transition that seems to sometimes occur in the endgame of an authoritarian regime. The traditional script was: The people rise up to rebel and the strongman murders them.

When the USSR collapsed, we thought it was special: it was a . . . → Read More: Jittery Regimes Fix Prices

Supreme Court Paves Way for a New Era of Price Fixing

In 1911, Dr. Miles Medical Co, a maker of relaxants and other medicines, sued a distributor, John D. Park & Sons Co., for selling at cut rate prices. The company lost the case when the Supreme Court held that it was trading too close to cartel-like trading. The judgment in the case Dr. Miles . . . → Read More: Supreme Court Paves Way for a New Era of Price Fixing