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Elad Gil, writing in a blog post: In most industries, regulation prevents competition. This famous chart of prices over time reflects how highly regulated industries (healthcare, education, energy) have their costs driven up over time, while less regulated industries (clothing, software, toys) drop costs dramatically over time. (Please note I do not believe these are inflation adjusted – so 60-70% may be “break even” pricing inflation adjusted.)
Regulation favors incumbents in two ways. First, it increase the cost of entering a market, in some cases dramatically. The high cost of clinical trials and the extra hurdles put in place to launch a drug are…
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