Definition of law
Requirements for human conduct applying to all persons within their jurisdiction
Factors courts commonly apply in reaching decisions
Fundamental notions of fairness
Custom or history involved
Command of a political entity
Best balance between conflicting societal interests
Reason To Regulate Drugs
Public Goods are
•Necessary and beneficial commodities products that private entities will not supply because there is no incentive for a private entity to provide them.
•Examples: Orphan drugs, vaccines, parks, highways
Why do we consider Orphan drugs as public goods?
Drugs that the number of patients who need them is so small that it is not commercially feasible.
Government must step in to ensure their availability for those who need them.
Whey do we consider Vaccines as public goods?
They benefit society as a whole by preventing epidemics, but because of acute reactions to them, they are
viewed as too risky by many individuals.
Prevention of epidermics is a public good and government must regulate by requiring vaccinations.
Whey do we consider Externality as public goods?
- When the production or consumption
of a good affects someone who does not fully consent to the effect
- When the costs of the good are not fully incorporated in the price of the good
- Example: Indiscriminate use of antibiotics
Whey do we consider Monopoly as public goods?
• When the fixed costs (
of providing a good are high relative to the variable costs of producing the good.
• Example: Patents and market exclusivity for new drugs
Whey do we consider Information Asymmetry as public goods?
• When the consumer is uniformed about the true value of a good
•Consumers are unable to determine
the medications value even after using them
Government regulations require
the provision of information and input by educated professionals into decisions
about drug use
: Prescription only drugs;
written consumer information for certain drugs
Limits of the law
•Certain human relationships,
in families or religious groups
•De minimis violations (
•Protecting individual freedoms while preventing harm to others.