Why do different people pay different prices for the same pharmaceutical product?
As in the case of virtually all products, price differences exist for pharmaceuticals, within markets and across geographic boundaries. Within a market, prices may differ depending on who the buyer is: different individuals will value a particular product differently and will be willing to pay different amounts for it. In addition, a customer’s buying power reflects his size or importance to the manufacturer. Prices depend on supply and demand, which vary across international borders. Demand is affected by economic, social and political factors. The market for pharmaceutical products depends on a country’s income level, its disease patterns, drug prescribing practices, cultural patterns and preferences, reimbursement systems, and whether patients and providers have information about available products. On the supply side, prices in a given market also reflect overall production and distribution costs. Tariffs and taxes, labor costs, transport costs, wholesale and retail mark-ups, regul
