Utilize este identificador para referenciar este registo:
https://hdl.handle.net/1822/43174
Título: | Reference pricing with endogenous generic entry |
Autor(es): | Brekke, Kurt R. Canta, Chiara Straume, Odd Rune |
Palavras-chave: | Pharmaceuticals Reimbursement schemes Generic entry Brand-biased consumers Drug expenditures |
Data: | Dez-2016 |
Editora: | Elsevier 1 |
Revista: | Journal of Health Economics |
Resumo(s): | Reference pricing intends to reduce pharmaceutical expenditures by increasing demand elasticity and stimulating generic competition. We develop a novel model where a brand-name producer competes in prices with several generics producers in a market with brand-biased and brand-neutral consumers. Comparing with coinsurance, we show that reference pricing, contrary to policy makers’ intentions, discourages generic entry, as it induces the brand-name producer to price more aggressively. Thus, the net effect of reference pricing on drug prices is ambiguous, implying that reference pricing can be counterproductive in reducing expenditures. However, under price regulation, we show that reference pricing may stimulate generic entry, since a binding price cap weakens the aggressive price response by the brand-name producer. This may explain mixed empirical results on the competitive effects of reference pricing. Finally, we show that reference pricing may be welfare improving when accounting for brand preferences despite its adverse effects on entry and prices. |
Tipo: | Artigo |
URI: | https://hdl.handle.net/1822/43174 |
DOI: | 10.1016/j.jhealeco.2016.04.003 |
ISSN: | 0167-6296 |
Versão da editora: | http://www.sciencedirect.com |
Arbitragem científica: | yes |
Acesso: | Acesso restrito UMinho |
Aparece nas coleções: | NIPE - Artigos em Revistas de Circulação Internacional com Arbitragem Científica |
Ficheiros deste registo:
Ficheiro | Descrição | Tamanho | Formato | |
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Reference pricing with endogenous generic entry.pdf Acesso restrito! | 458,31 kB | Adobe PDF | Ver/Abrir |