Baby Formula Market Concentration and Price Gouging

Four companies control more than 90% of the baby formula market in America. The biggest by far is abbot, which has more than forty percent of the market. 98 % of america's formula is produced domestically and there are very strict restrictions on what can be brought into the country. Some politicians have seized on it as a sign of corporate greed but Simon says this is misplaced. High prices are clearly a problem, but there is symptom. They are not the cause of the problem.