4/15/2005

Maintaining Monopolies

In class we are learning about a firm’s strategy to keep other firms from entering the market. Eli Lilly and Co. will keep its patent on a schizophrenia drug until 2011. Do you think that it is better to let companies keep their patents longer, or let other companies produce it cheaper?

5 comments:

trudy said...

There must be some sort of middle ground. I think that a company or individual should rewarded for creating a drug or anything that is desirable and profitable. I also want that item at a cheap price. Maybe the government could regulate the profit margin on the particular item

Rex said...

I couldn’t agree more with Trudy. I understand the pharmaceutical companies invest huge amounts of money in to developing new drugs and should be able to profit. The question is how long and how much is fare?

Dr. Tufte said...

-1 on Trudy's comment for grammatical errors.

This is more of an ECON 3020 topic. There is actually pretty solid evidence that the length of patents is too short, in that inventor's get a lot less from their invention than soceity does.

carter said...

Dr. Tufte said there is actually pretty solid evidence that the length of patents is too short, in that inventor's get a lot less from their invention than soceity does. I agree if someone creates a product they should have the right to sell it longer than they do now and I think that the patent should be international.

Dr. Tufte said...

How do we do the latter?