How does insulin price gouging work? Shouldn’t competitors be interested in selling for $1 less until it gets close to actual cost?

Question

Given that its insulin and not some new pharmaceutical, I assume the method of making more is available to everyone?

In: Economics

Answer 1

Why sell for less and compete, when we can both sell for the same high amount and each get rich?

I want to be rich more than i want you to be poor. So, instead of dropping my price to put you out of business, I’d prefer it if we could both fix a high price. The end result is the same, but instead of selling for bottom dollar, we both sell for more.