As EpiPen raised its price by four times as much as it used to be, the heated debate about business ethics went viral. People argued whether healthcare related companies increased the price of their product could be justified. Also, the question about whether government should be involved in the free market had again emerged on the surface. Below are some of my points regarding these two questions.

EpiPen, a medication which is crucial to people suffering from food allergies, is now raising its price by four times as it used to be.

First of all, the fact that we have so many healthcare related companies in our market do not suggest that we have as many variety of choices. Some may argue that one should not complain about the huge increase in product prices because we can choose products from other companies if we considered the price is unreasonable. Unfortunately, the truth is when a company raises its prices of products, others follow. The argument of “consumers have choices” should not be a reason and excuse to justify the spike of price.

Next, regulation in market place is necessary. The question should be how government formulate the items needed to be regulated. From an evolutionary perspective, humans have long been “greedy” because they used to be constantly exposed to a poor and dangerous environment. Although nowadays most people are not in the “life or death”, “flight or fight” mode, the instinct to “grab more resource to keep ourselves from starving and danger” is still hardwired in our brain. Greed is inevitable in the society, therefore, blaming people of being greedy is of no use.

Government’s intervention is a necessary approach to ensure people a better life. Nevertheless, it should be very careful about the procedure of listing items that are necessary for regulation. Laws which contradict the constitution and the principle of legislation should be thoroughly explained and discussed by judges. Otherwise, it will not only discourage the capital market, but also the limit of regulation can extend to anything in our daily life without clear boundary.

Last but not least, the most effective ways of discouraging price spikes like EpiPen are through incentives and fines. Telling firms how raising prices can cause severe consequences in patients’ health will not change the status quo. Warning CEO of the company that their reputation would drop due to the price rise also did not help because there are very few competitors producing the same product. It is through policies that seem to benefit firms and fines that can impose harm to them that can really prevent the negative actions in the market place. Although the most fundamental way to solve the problem is by educating ethics in school system, the business executives may be unchangeable enough that the government can save some money from further education and propaganda.

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