Pricing is an essential tool for firms to increase profits, but sometimes things can go awry. For this prompt, you will explore a recent example of a significant price increase on a product. You may consider the price increase on Daraprim, the EpiPen, recent price-gouging examples in the wake of hurricanes, or any other similar example where an individual or a company made a decision to raise the price of a product.
As part of your analysis, complete the following:
1) Who made the decision?
2) What information did the decision-maker use to make the decision?
3) What were the incentives facing the decision-maker?
Lastly, provide your own analysis. Reflect on the ethical and legal considerations relevant to the example. What would you have done differently? Would any price increases at all be justifiable on moral grounds? Explain.
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