Re: Re: Re: Re: Re: Brands, their material base? was Re:My Take onCompetition
I asked > 1) how big are the profits of the companies that hold IP compared to those > that don't? Michael P. answered: >1. The most profitable industry -- when you take a large swath -- is the >pharmaceutical industry. Companies that produce relatively undifferentiated >commodities are relatively unprofitable. Okay, but do you have numbers? BTW, is the IP "industry" related to Jamie Galbraith's K-sector? if so, he presents some of his data in his CREATED UNEQUAL that suggests that US workers in that sector have had relatively high wage gains. So maybe some of those workers are capturing some of the monopoly rents in that sector? > 2) how does the pricing power of companies that have IP depress real wages > relative to labor productivity and therefore increase the aggregate rate of > exploitation (rate or surplus-value)? Are these companies large enough > compared to the total market to have this effect? >2. A family has to work more hours to buy a unit of medicine. What keeps them from earning higher wages so that they can pay for that medicine? is it the IP-based monopoly or is it the general one-sided class war that's been prevailing in the US since the 1970s, along with increased insecurity? > 3) have we reached the stage of the discussion where it's best to agree to > disagree? >3. No. I don't know about you, but I am still learning. it's up to you. >Do I have to give you a stamped, self-addressed envelope to find out my score? I don't grade my friends or their ideas. In fact, I don't grade unless I'm paid to do so. Jim Devine [EMAIL PROTECTED] & http://bellarmine.lmu.edu/~jdevine ["clawww" or "liberalarts" can replace "bellarmine"]
Re: Re: Re: Re: Re: Re: Brands, their material base?was Re:My Take onCompetition
Doug Henwood wrote: > Yeah, pharmaceuticals are often described as the most profitable > legal industry around. But 1) has profitability increased, The industry is in flux. They have few blockbusters on line. They spend to much on advertising and not enough on research and the public science on which they depend has been flagging. Even Newt is calling for more spending. > 2) how > much of the industry's revenue comes from out-of-pocket expenditures > by final consumers I don't know -- if you mean from people paying directly rather than via insurance companies. > , 3) aren't drug prices lower in countries with > national health systems, which are in a stronger bargaining position > than buyers in a fragmented system like the U.S., It is not fragmentation. Even the US gov't pays more. It is the power that we give them. > and 4) isn't demand > pretty price-inelastic, given what people will pay for health? Not sure. Yes, an individual's preference may be inelastic, but the HMOs prefer generics. -- Michael Perelman Economics Department California State University Chico, CA 95929 Tel. 530-898-5321 E-Mail [EMAIL PROTECTED]
Re: Re: Re: Re: Re: Brands, their material base?was Re:My Take onCompetition
Michael Perelman wrote: >1. The most profitable industry -- when you take a large swath -- is the >pharmaceutical industry. Companies that produce relatively undifferentiated >commodities are relatively unprofitable. > >2. A family has to work more hours to buy a unit of medicine. Yeah, pharmaceuticals are often described as the most profitable legal industry around. But 1) has profitability increased, 2) how much of the industry's revenue comes from out-of-pocket expenditures by final consumers, 3) aren't drug prices lower in countries with national health systems, which are in a stronger bargaining position than buyers in a fragmented system like the U.S., and 4) isn't demand pretty price-inelastic, given what people will pay for health? Doug
Re: Re: Re: Re: Brands, their material base? was Re:My Take onCompetition
I am going to make a stab at Jim's test. 1. The most profitable industry -- when you take a large swath -- is the pharmaceutical industry. Companies that produce relatively undifferentiated commodities are relatively unprofitable. 2. A family has to work more hours to buy a unit of medicine. 3. No. I don't know about you, but I am still learning. Do I have to give you a stamped, self-addressed envelope to find out my score? Jim Devine wrote: > Michael P. wrote: > >how about the owners' of genes? What if Amazon's patents hold? It could > >actually become a profitable company perhaps. > > 1) how big are the profits of the companies that hold IP compared to those > that don't? > > 2) how does the pricing power of companies that have IP depress real wages > relative to labor productivity and therefore increase the aggregate rate of > exploitation (rate or surplus-value)? Are these companies large enough > compared to the total market to have this effect? > > 3) have we reached the stage of the discussion where it's best to agree to > disagree? > > Jim Devine [EMAIL PROTECTED] & http:/bellarmine.lmu.edu/~JDevine > "It takes a busload of faith to get by." -- Lou Reed. > ["clawww" or "liberalarts" can replace "bellarmine"] -- Michael Perelman Economics Department California State University Chico, CA 95929 Tel. 530-898-5321 E-Mail [EMAIL PROTECTED]