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The Importance of Doctors' and Patients' Preferences in the Prescription Decision

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Author Info
Coscelli, Andrea
Abstract

This paper studies the contribution of doctor and patient "habit" to persistence in market shares in prescription drug markets. My unique panel dataset allows me to estimate the probability of switching brands as a function of patient and doctor attributes, with an emphasis on past prescribing behaviour so as to capture the degree of persistence. I find significant evidence of time-dependence in prescription choices for both doctors and patients, which seems to imply that in molecular submarkets in which brands are not allowed to compete on the basis of price, doctor and patient "habit" at the micro-level can translate into sticky and persistent market shares at the aggregate level. Copyright 2000 by Blackwell Publishing Ltd

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Article provided by Blackwell Publishing in its journal Journal of Industrial Economics.

Volume (Year): 48 (2000)
Issue (Month): 3 (September)
Pages: 349-69
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Handle: RePEc:bla:jindec:v:48:y:2000:i:3:p:349-69

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  1. Furu, Kari & Dalen, Dag Morten & Locatelli, Marilena & Strøm, Steinar, 2008. "Generic Substitution," Memorandum 11/2008, Oslo University, Department of Economics. [Downloadable!]
  2. Anna Merino, 2000. "The Impact of the Reference Price System on the Pharmaceutical Market: A Theoretical Approach," Working Papers, Research Center on Health and Economics 524, Department of Economics and Business, Universitat Pompeu Fabra, revised Jun 2003. [Downloadable!]
  3. Frank Windmeijer & Eric de Laat & Rudy Douven & Esther Mot, 2004. "Pharmaceutical promotion and GP prescription behaviour," CPB Discussion Papers 30, CPB Netherlands Bureau for Economic Policy Analysis. [Downloadable!]
    Other versions:
  4. Anna Merino, 2003. "Demand for Pharmaceutical Drugs: A Choice Modelling Experiment," Working Papers, Research Center on Health and Economics 704, Department of Economics and Business, Universitat Pompeu Fabra. [Downloadable!]
  5. Razzolini, Tiziano, 2004. "The Norwegian market for pharmaceuticals and the non-mandatory substitution reform of 2001: the case of enalapril," Memorandum 12/2004, Oslo University, Department of Economics. [Downloadable!]
  6. Anna Merino, 2003. "Demand for Pharmaceutical Drugs: A Choice Modelling Experiment," Economics Working Papers 704, Department of Economics and Business, Universitat Pompeu Fabra. [Downloadable!]
  7. Granlund, David & Rudholm, Niklas, 2008. "Consumer Loyalty in the Swedish Pharmaceuticals Market," HUI Working Papers 17, The Swedish Retail Institute (HUI). [Downloadable!]
  8. Dalen, Dag Morten & Strøm, Steinar & Haabeth, Tonje, 2005. "Price regulation and generic competition in the pharmaceutical market," Memorandum 33/2005, Oslo University, Department of Economics. [Downloadable!]
    Other versions:
  9. Gonzalez, Jorge & Sismeiro, Catarina & Dutta, Shantanu & Stern, Philip, 2006. "Market Effects of Generic Entry: The Role of Physicians and of Non-Bioequivalent Competitors," MPRA Paper 3717, University Library of Munich, Germany, revised May 2007. [Downloadable!]
  10. Dalen Dag Morten & Furu Kari & Locatelli Marilena & Strom Steinar, 2009. "Genetic substitution micro evidence from register data in Norway," Department of Economics Working Papers 200901, University of Turin. [Downloadable!]
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