Economists, and pharma lobbyists, argue against US drug price regulation because new drugs produce large positive externalities.
I think it's a mix of pharma lobbying and also altruism. Pharma lobbies Congress to do the altruistic thing, and many Congresspeople agree, because they believe in markets and understand incentives.
I think it's a mix of pharma lobbying and also altruism. Pharma lobbies Congress to do the altruistic thing, and many Congresspeople agree, because they believe in markets and understand incentives.