It is irrational to charge high prices for socially…
“It is irrational to charge high prices for socially valuable innovations as this guarantees that they will be underutilized. It is much better to sell them at cost and then to reward the innovator in some other way. This is not always possible, because in some cases the value of an innovation is in the eye of the beholder; it's very difficult to value how much a new Madonna song is worth, for example. But in the case of medicines, green technologies and seeds in agriculture, such an alternative reward mechanism is fairly straightforward.”
About This Quote
This interpretation was drafted with AI assistance. It is one reading of the quote, not the author's own explanation.
Charging high prices for socially valuable innovations leads to underuse; selling at cost and rewarding innovators differently can improve access.
In simple terms: High prices reduce use; cost pricing helps access.
Key Takeaway
Price innovations to improve access.
Themes
ethics
economics
innovation
public health
environment
Mood
concerned
hopeful
Type
policy
ethical
When to use this quote
- medicine distribution
- green tech adoption
- agricultural seed sharing
Key Concepts
social welfare
incentive structures
pricing models
Questions to Reflect On
- How can societies balance profit and public good?
- What alternative rewards are most effective?
A Different Perspective
Cost pricing may reduce profit incentives for private R&D.