全球智库信息集成服务系统(G2TT): The New Prescription Drug Paradox: Pipeline Pressure and Rising Prices

G2TT

来源类型	Working Paper
规范类型	报告
DOI	10.3386/w24387
来源ID	Working Paper 24387
	The New Prescription Drug Paradox: Pipeline Pressure and Rising Prices
	Alice M. Ellyson; Anirban Basu
发表日期	2018-03-12
出版年	2018
语种	英语
摘要	Economic literature has extensively studied how prices for incumbent pharmaceutical drugs respond to generic competition after entry. However, less attention has been paid to pricing behavior in anticipation of brand-to-brand competition. We contribute to this gap in the literature by both developing a model of pricing strategies for incumbent drug manufacturers under tiered-insurance anticipating branded competition. Our model predicts rising prices for incumbent drugs for a range of elasticities as the likelihood of entry increases from competitors with horizontally-differentiated products. Using the insulin market as a natural experiment, we exploit exogenous variation in a potential entrant's completion of clinical trials to identify the effect of drug pipeline pressure on the prices of incumbent drugs. Results suggest that pipeline pressure significantly increases the prices of incumbent drugs. We expect that similar pricing effects will be prevalent with potential biosimilar entry.
主题	Health, Education, and Welfare ; Health ; Other ; Law and Economics ; Industrial Organization ; Market Structure and Firm Performance
URL	https://www.nber.org/papers/w24387
来源智库	National Bureau of Economic Research (United States)
引用统计
资源类型	智库出版物
条目标识符	http://119.78.100.153/handle/2XGU8XDN/582061
推荐引用方式 GB/T 7714	Alice M. Ellyson,Anirban Basu. The New Prescription Drug Paradox: Pipeline Pressure and Rising Prices. 2018.

条目包含的文件
文件名称/大小	资源类型	版本类型	开放类型	使用许可
w24387.pdf（542KB）	智库出版物		限制开放	CC BY-NC-SA	浏览