1. "New Push Ties Cost of Drugs to How Well they Work," by Loftus, and "Pay-For-Performance is No Miracle Cure," by Pauly; the authors make an argument that tying the price of a drug to its effectiveness is a form of price discrimination. 
2. 
   
3. (i) Does this practice meet the conditions required for price discrimination? Why or why not? Please address all conditions one by one. 
4. 
   
5. (ii) Pauly concludes that it is highly unlikely that consumers will be better off as a group if monopolistic pharmaceutical companies practice discriminatory pricing. Analyze this claim using economic intuition.
6. https://www.wsj.com/articles/new-push-ties-cost-of-drugs-to-how-well-they-work-1432684755?reflink=desktopwebshare_permalink In the articles (links provided)