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Will future biomedical advances be low marginal cost?

Healthcare
United States
Gestartet June 29, 2026

Most pharmaceuticals involve high upfront costs, to discover and test the drug, and very low marginal costs. Another pill can be printed almost for free. That cost structure favors health systems, such as that of Britain, that try to pay lower for services. They can end up getting a relatively good deal from price discrimination. […] The post Will future biomedical advances be low marginal cost? appeared first on Marginal REVOLUTION. Related StoriesMy ARC talk on AI and jobsAzeem Azhar (and o...

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CLAIM Veröffentlicht von will • Jun 29, 2026
If future biomedical advances favor low marginal costs, it could reshape market dynamics, allowing for more competitive pricing strategies in healthcare.

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CLAIM Veröffentlicht von will • Jun 29, 2026
Relying on low marginal costs might undermine pharmaceutical innovation, as companies may lack incentives to invest in new drug development.

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CLAIM Veröffentlicht von will • Jun 29, 2026
While low marginal costs in drug production may benefit some health systems, it could further entrench inequalities in global healthcare access.

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CLAIM Veröffentlicht von will • Jun 29, 2026
The high upfront costs of drug discovery will likely persist, meaning low marginal costs may not significantly reduce overall healthcare expenses.

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CLAIM Veröffentlicht von will • Jun 29, 2026
The potential for low marginal costs in pharmaceuticals could lead to increased access to life-saving medications for all socioeconomic groups.

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