Protectionism under other names

24/06/2004

I went to the chemist to buy formula for Orlando. At the entrance of the shop there was a poster highlighting a campaign aimed to stop supermarket selling medicines and other health related products. The poster pointed out that the quality of the service provided by the supermarket would be much lower than the one in the chemist. They were even collecting signatures, to show how many citizens are outraged by the idea of risking our health. My dialogue with the dependant was more or less like this:
—Hi, I would like to know which formula do you recommend for newborns.
—Err, not sure. What did the pediatrician recommend?
—The pediatrician did not want to suggest any brand, just to avoid any commercial implications and conflicts of interest. He suggested asking you.
—Err, what did the nurses recommend?
—They didn’t recommend anything, same reason as before (Getting tired of the conversation).
—Err, this is the most popular brand (pointing to some middle of the range tin of formula).
—I didn’t ask which one was the most popular, but which one was the best.
—I really don’t know. Did you ask your Doctor?

I thought ‘lets try in another chemist’, which was less than a block away. The dialogue was almost identical. I bought something else, and the chemist provided me with ‘advice’, actually she just read the instructions from the box… Thank you, I know how to read. Would I be worse off going to the supermarket? Not really, and things would be cheaper. This seems to be just another sector where consumers are worse off because of artificial entry barriers; the result is poor service more expensive than necessary.

Watching TV a few days later I saw a protest of apple producers in Tasmania. They want to stop imports of apples from New Zealand because of phytosanitary reasons (some low risk of fireblight attack). However, it sounds pretty much like avoiding competition with a lame excuse. As a result I still miss my favourite variety: Pacific Rose. Incidentally, I do miss Hubbards’ ‘Fruitful Breakfast’ cereal too!

This post has a follow up in September 2004.

Filed in economics, miscellanea, politics

There are 2 comments in this article:

  1. 11/01/2008Quantum Forest » Blog Archive » Pharmacies and competition say:

    [...] June I made some comments on how chemists (pharmacies) were stifling competition. That was a comment solely based on my experience dealing with them. Ten days ago Choice Magazine, [...]

  2. 14/01/2008Quantum Forest » Blog Archive » Rampant protectionism say:

    [...] have written before about protectionism in Tasmania, but never at such a large scale. McDonalds had the chutzpa [...]

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