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The Importance of the Physician in the Generic Versus Trade-Name Prescription Decision

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Author Info
Judith K. Hellerstein

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Abstract

I examine the importance of physicians in the process by which patients receive either trade-name or generic drugs. Using a dataset on physicians, their patients, and the multisource drugs prescribed, I find that almost all physicians prescribe both types of drugs to their patients, but some physicians are more likely to prescribe generic drugs while other physicians are more likely to prescribe trade-name drugs. Very little of the prescription decision can be explained by observable characteristics of individual patients, but all of the evidence indicates that physicians are indeed an important agent in determining whether patients receive either trade-name or generic drugs.

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File URL: http://links.jstor.org/sici?sici=0741-6261%28199821%2929%3A1%3C108%3ATIOTPI%3E2.0.CO%3B2-5&origin=repec
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Publisher Info
Article provided by The RAND Corporation in its journal RAND Journal of Economics.

Volume (Year): 29 (1998)
Issue (Month): 1 (Spring)
Pages: 108-136
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Handle: RePEc:rje:randje:v:29:y:1998:i:spring:p:108-136

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  1. Martin Gaynor & Jian Li & William B. Vogt, 2006. "Is Drug Coverage a Free Lunch? Cross-Price Elasticities and the Design of Prescription Drug Benefits," NBER Working Papers 12758, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  2. Beatriz Domínguez & Juan José Ganuza & Gerard Llobet, 2005. "R&D in the Pharmaceutical Industry: A World of Small Innovations," Economics Working Papers 936, Department of Economics and Business, Universitat Pompeu Fabra. [Downloadable!]
    Other versions:
  3. Kurt R. Brekke & Ingrid Königbauer & Odd Rune Straume, 2006. "Reference Pricing of Pharmaceuticals," CESifo Working Paper Series CESifo Working Paper No. , CESifo Group Munich. [Downloadable!]
    Other versions:
  4. Ernst R. Berndt, 2002. "Pharmaceuticals in U.S. Health Care: Determinants of Quantity and Price," Journal of Economic Perspectives, American Economic Association, vol. 16(4), pages 45-66, Fall. [Downloadable!] (restricted)
  5. Andrew Ching, 2000. "Dynamic Equilibrium in the US Prescription Drug Market After Patent Expiration," Econometric Society World Congress 2000 Contributed Papers 1242, Econometric Society. [Downloadable!]
  6. Guillem López & Jaume Puig, 1999. "Review of the Literature on Reference Pricing," Economics Working Papers 362, Department of Economics and Business, Universitat Pompeu Fabra. [Downloadable!]
  7. Panos Kanavos & Joan Costa Font & Alistair McGuire, 2007. "Product differentiation, competition and regulation of new drugs: the case of statins in four European countries," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 28(4-5), pages 455-465. [Downloadable!]
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  8. 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!]
  9. Guillem López & Jaume Puig, 1999. "Review of the Literature on Reference Pricing," Working Papers, Research Center on Health and Economics 362, Department of Economics and Business, Universitat Pompeu Fabra. [Downloadable!]
  10. Nina Pavcnik, 2000. "Do Pharmaceutical Prices Respond to Insurance?," NBER Working Papers 7865, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  11. Olivier Armantier and Soiliou Daw Namaro, . "Prescription Drug Advertising and Patient Compliance: A Physician Agency Approach," Department of Economics Working Papers 03-01, Stony Brook University, Department of Economics. [Downloadable!]
  12. 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!]
  13. Anna Merino, 2003. "Demand for Pharmaceutical Drugs: A Choice Modelling Experiment," Economics Working Papers 704, Department of Economics and Business, Universitat Pompeu Fabra. [Downloadable!]
  14. Thomas Aronsson & Mats Bergman & Niklas Rudholm, 2001. "The Impact of Generic Drug Competition on Brand Name Market Shares – Evidence from Micro Data," Review of Industrial Organization, Springer, vol. 19(4), pages 423-433, December. [Downloadable!] (restricted)
  15. Granlund, David & Rudholm, Niklas, 2008. "Consumer Loyalty in the Swedish Pharmaceuticals Market," HUI Working Papers 17, The Swedish Retail Institute (HUI). [Downloadable!]
  16. Richard G. Frank, 2004. "Behavioral Economics and Health Economics," NBER Working Papers 10881, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  17. Granier, L. & Trinquard, S., 2007. "Mergers and Barriers to Entry In Pharmaceutical Markets," Cahiers du LASER (LASER Working Papers) 2007.21, LASER (Laboratoire de Science Economique de Richter), Faculty of Economics, University of Montpellier 1. [Downloadable!]
  18. 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!]
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  19. William N. Evans & Helen Levy & Kosali I. Simon, 2000. "Data Watch: Research Data in Health Economics," Journal of Economic Perspectives, American Economic Association, vol. 14(4), pages 203-216, Fall. [Downloadable!] (restricted)
  20. Kurt R Brekke & Michael Kuhn, . "Direct-to-Consumer Advertising in Pharmaceutical Markets," Discussion Papers 03/11, Department of Economics, University of York. [Downloadable!]
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  21. 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!]
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