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Why does the drop rate drop after the first time you defeat a act boss such as diablo. and is there a way to increase the amount of drops gained?

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possible duplicate of Is the drop rate constant for bosses? – dlanod May 30 '12 at 21:44
up vote 4 down vote accepted

You are guaranteed a rare drop from all bosses on your first time killing each boss on normal difficulty. As of the 1.05 patch, you get "improved loot" for the first kill of a boss on every difficulty (its not clear exactly what this equates to yet). The intention isn't to allow players to farm, but to allow them to acquire enough gear to survive going forward.

After your first time on each boss, the only way to increase drop rate is through magic find and the Nephalem Valor buff

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Good call on normal difficulty only. I was wondering why I wasn't getting rares in nightmare/hell. – Resorath May 30 '12 at 19:23
It looks like you get guaranteed 2 rares the first time that you defeat a boss. I just killed a boss on Nightmare with my Demon Hunter, and that's what happened for me (while pre-patch he was only getting blues from bosses w/ no change in gear). – Adeese Oct 17 '12 at 13:28

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