Originally posted by wufan
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How can capitalism function properly when there are secret incentive schemes that the consumer doesn't know about? Economists always assume perfect information in their models. When the pharmacist gets a kick back, that pharmacist has an incentive to leave out certain information (even if it's just a few side effects). When that happens, how can a consumer make an informed decision?
To respond to the inevitable arguments: 1. A consumer can't just go look up the side effects or information at home. We trust doctors and pharmacists since they have more education than we do. 2. It is not functioning capitalism. Capitalism is supposed to ensure the best and cheapest products win. This process ensures the company with the best incentive scheme wins.
Most importantly, though, what the company did is 100%, without a doubt, illegal. A direct violation of the law. The company paid 10% of what they should have by law. People wanted examples of illegal behavior that wasn't punished, and this is one example, regardless of whether you think it's a bad law. Don't let your bias against Elizabeth Warren cloud your judgment of that.
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