The Effects of Pharmaceutical Marketing and Promotion on Adverse Drug Events and Regulation
AbstractThis paper analyzes the relationship between postmarketing promotional activity and reporting of adverse drug reactions (ADRs) by modeling the interaction between a regulator (the FDA) and a pharmaceutical firm. Promotion-driven market expansions enhance profitability yet may involve the risk of inappropriate drug prescriptions, leading to regulatory actions against the firm. We empirically test the relationship between drug promotion and reporting of ADRs using an innovative combination of commercial data on pharmaceutical promotion and FDA data on regulatory interventions and ADRs. We provide some evidence that increased levels of promotion and advertising lead to increased reporting of ADRs for certain conditions. (JEL L51, L65, M31, M37)
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Bibliographic InfoArticle provided by American Economic Association in its journal American Economic Journal: Economic Policy.
Volume (Year): 2 (2010)
Issue (Month): 4 (November)
Other versions of this item:
- Guy David & Sara Markowitz & Seth Richards, 2009. "The Effects of Pharmaceutical Marketing and Promotion on Adverse Drug Events and Regulation," NBER Working Papers 14634, National Bureau of Economic Research, Inc.
- L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation
- L65 - Industrial Organization - - Industry Studies: Manufacturing - - - Chemicals; Rubber; Drugs; Biotechnology
- M31 - Business Administration and Business Economics; Marketing; Accounting - - Marketing and Advertising - - - Marketing
- M37 - Business Administration and Business Economics; Marketing; Accounting - - Marketing and Advertising - - - Advertising
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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Journal of Law and Economics,
University of Chicago Press, vol. 45(S2), pages 673-690.
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"Can Higher Prices Stimulate Product Use? Evidence from a Field Experiment in Zambia,"
NBER Working Papers
13247, National Bureau of Economic Research, Inc.
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- Dehez, Pierre & Jacquemin, Alex, 1975. "A Note on Advertising Policy under Uncertainty and Dynamic Conditions," Journal of Industrial Economics, Wiley Blackwell, vol. 24(1), pages 73-78, September.
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