Ethics of Product Pricing Essay Example | Topics and Well Written Essays - 500 words

Ethics of Product Pricing - Essay ExampleTwo, more putting green arguments, put forward by these companies are that they need to cover R & D be and they have to cover the development costs before the harvest-festival becomes obsolete. R & D costs are those costs associated with manufacture of the drugs, interrogation done to find the cure of a disease and any other costs that are bore by the drug manufacturing companies in order to bring their product in the final shape, one that is presented to the consumers for sale. These costs are often precise high and in order to cover those costs products are marked-up with these costs against the expected sales. Similarly, whenever a company develops a product, it saves its rivals from spending on the research and they use the research done by the original developer and enjoy free-riding at the expenses of the first developer. So, firms are forced to cover those costs before the patent expires and rivals diverge copying the drug. As a r esult, they charge high price to cover these costs during the time when patent is still active. As a result, this behavior is reflected in high prices for the consumers.John Rawls theory of distributive justice was based on equity and liberty. It focuses on equal distribution of assets between different members of the community. Rawls similarly stressed that everything must be done in an act of achieving fairness. He negated the idea that actions of one person should harm another person. This canister be related to the pharmaceutical industry in a way that both rich and poor in the society should receive equal health care disregarding of their abilities to pay. This will create an atmosphere in the society that will lubricate the process of societal goods in which all will work towards a normal aim of doing something good for society. For example, drug companies might share R & D costs, in order to provide good for the consumers or society by providing them cheaper medicines. Si milarly, it can also