Professional Documents
Culture Documents
Alfredo Gonzalez
Kerry MacNamara
ECON-2010
that made its way around the Internet and select television networks.
The video starts out with a horrified girl looking straight at the camera,
shaking her head, saying, look at your face! the camera then moves
revealing that the video is shot from a first person perspective (aka
point of view) and you are a young girl who has accidently ingested
covered arms and wrists, and as more people enter the frame, panic
becomes rampant. The video makes clever use of camera shaking, and
MMP campaign, Meth, not even once and does not appear to try and
you should carry for severe reactions; the specificity of that last
statement paired with a brief appearance of the Mylan logo at the end
for which the pharmaceutical company Mylan and their CEO Heather
Bresch would receive heavy criticism from all types of outlets, ranging
effect of the EpiPen price change and why the decision received so
In 2016 the price of a two pack of EpiPens rose from a little over $100
met with negative consequences for the firm based strictly on laws of
with Mylan however, things were different and it was these differences
that allowed the company to get away with a 500% increase in the
adrenaline injection will increase heart rate effecting blood vessels, the
inelastic product. What this means is that the demand curve for the
product is near vertical so that no matter what price the company sets,
consumers will purchase it because they have no other choice. But not
all elasticity, or inelasticity for that matter, is the same; gasoline for
example is an inelastic good over the short run, people need fuel no
people could not afford gasoline, they could walk or find alternative
modes of transportation. With the EpiPen the stakes are higher and
whatever it wants.
with Mrs. Bresch that Mylan held 94% of the market share for the
market, the company dictates the prices and quantity supplied of its
difficult for any new firm to compete with a giant like Mylan.
Part of the reason why this price change had such a strong backlash
taking social regulation into account, because of this the company was
(as the company claims) a blatant disregard for public opinion made
sure to alienate those that would have otherwise sided with the
public reaction exemplifies the flaws of the legal and economic system
Sources
http://www.cnbc.com/2017/04/03/mylan-hit-with-racketeering-
suit-over-big-price-hikes-of-epipen.html
http://www.hormone.org/hormones-and-health/what-do-
hormones-do/adrenaline
https://www.faceyourrisk.com/
http://www.wsj.com/livecoverage/mylan-epipen-congress-
hearing/card/1474407401
6
https://www.forbes.com/sites/arleneweintraub/2016/12/01/mylan-
ceo-bresch-admits-full-responsibility-for-epipen-price-
hikes/#7417bdb1393c