Do Pharmaceutical Sales Respond to Scientific Evidence?
AbstractI investigate how different sources of information influence the diffusion of pharmaceutical innovations. In prescription-drug markets, both advertising and scientific information stemming from clinical trials can affect physicians' prescription choices. Using novel indices of clinical-research output, I find that both marketing and scientific evidence directly influence the diffusion process in the antiulcer-drug market, with marketing having a more pronounced influence. I also find evidence that clinical outputs are important drivers of firms' marketing efforts, affecting sales indirectly. Taken together, the direct and indirect effects of science on demand imply strong private incentives for clinical research. I conclude that product-market competition in the pharmaceutical industry is shaped by both advertising rivalries and scientific rivalries. Moreover, drug advertising may perform an important informative function. Copyright (c) 2002 Massachusetts Institute of Technology.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by Wiley Blackwell in its journal Journal of Economics & Management Strategy.
Volume (Year): 11 (2002)
Issue (Month): 4 (December)
Contact details of provider:
Web page: http://www.kellogg.northwestern.edu/research/journals/JEMS/
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Matthias Dahm & Paula González & Nicolás Porteiro, 2008.
"Trials, Tricks and Transparency: How Disclosure Rules Affect Clinical Knowledge,"
08.02, Universidad Pablo de Olavide, Department of Economics.
- Dahm, Matthias & González, Paula & Porteiro, Nicolás, 2009. "Trials, tricks and transparency: How disclosure rules affect clinical knowledge," Journal of Health Economics, Elsevier, vol. 28(6), pages 1141-1153, December.
- Dahm, Matthias & González, Paula & Porteiro Fresco, Nicolás, 2008. "Trials, tricks and transparency: how disclosure rules affect clinical knowledge," Working Papers 2072/5360, Universitat Rovira i Virgili, Department of Economics.
- Pedroso, Marcelo Caldeira & Nakano, Davi, 2009. "Knowledge and information flows in supply chains: A study on pharmaceutical companies," International Journal of Production Economics, Elsevier, vol. 122(1), pages 376-384, November.
- Andrew Ching & Masakazu Ishihara, 2010. "The effects of detailing on prescribing decisions under quality uncertainty," Quantitative Marketing and Economics, Springer, vol. 8(2), pages 123-165, June.
- Pradeep Chintagunta & Renna Jiang & Ginger Jin, 2009. "Information, learning, and drug diffusion: The case of Cox-2 inhibitors," Quantitative Marketing and Economics, Springer, vol. 7(4), pages 399-443, December.
- Grönqvist, Erik & Lundin, Douglas, 2006.
"Incentives for Clinical Trials,"
Working Paper Series in Economics and Finance
636, Stockholm School of Economics.
- Brekke, Kurt R. & Kuhn, Michael, 2003.
"Direct-to-Consumer Advertising in Pharmaceutical Markets,"
Working Papers in Economics
05/03, University of Bergen, Department of Economics.
- Brekke, Kurt R. & Kuhn, Michael, 2006. "Direct to consumer advertising in pharmaceutical markets," Journal of Health Economics, Elsevier, vol. 25(1), pages 102-130, January.
- Kurt R. Brekke & Michael Kuhn, 2005. "Direct to Consumer Advertising in Pharmaceutical Markets," CESifo Working Paper Series 1493, CESifo Group Munich.
- Kurt R Brekke & Michael Kuhn, . "Direct-to-Consumer Advertising in Pharmaceutical Markets," Discussion Papers 03/11, Department of Economics, University of York.
- Venkataraman, S. & Stremersch, S., 2007. "The Debate on Influencing Doctorsâ€™ Decisions: Are Drug Characteristics the Missing Link?," Research Paper ERS-2007-056-MKT, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus Uni.
- Ching, Andrew & Ishihara, Masakazu, 2007. "The Effects of Detailing on Prescribing Decisions under Two-Sided Learning," MPRA Paper 4935, University Library of Munich, Germany.
- Jie Chen & John Rizzo, 2012. "Pricing dynamics and product quality: the case of antidepressant drugs," Empirical Economics, Springer, vol. 42(1), pages 279-300, February.
- Price, Joseph & Simon, Kosali, 2009. "Patient education and the impact of new medical research," Journal of Health Economics, Elsevier, vol. 28(6), pages 1166-1174, December.
- John Cawley & John A. Rizzo, 2005. "The Competitive Effects of Drug Withdrawals," NBER Working Papers 11223, National Bureau of Economic Research, Inc.
- Coscelli, Andrea & Shum, Matthew, 2004. "An empirical model of learning and patient spillovers in new drug entry," Journal of Econometrics, Elsevier, vol. 122(2), pages 213-246, October.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Wiley-Blackwell Digital Licensing) or (Christopher F. Baum).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.