Kamphorst, Jurjen; Karamychev, Vladimir A. - 2021 - This version: January 11, 2021
our theory is the health care market, where drug prices can be very high. Our model predicts that monopoly prices for …We offer a theory of how the combination of budget constraints and insurance drives up prices. A natural context for … literature. As a result, prices of drugs sold by a monopoly treating rare serious diseases are doomed to go sky high. …