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

Sometimes, Companies can come together to form something like a monopoly. It doesn’t make sense to try and undercut each other when they can form an alliance and agree on a price.

Veritasium has a video on this. It is slightly different, focusing more do on the dearth of innovation, but still does talk about competitors working together: https://youtu.be/j5v8D-alAKE