Entry Decisions in the Generic Pharmaceutical Industry
AbstractData on all generic drug entries in the period 1984-1994 are used to estimate which markets heterogeneous potential entrants will decide to enter. I find that organizational experience predicts entry. Firms tend to enter markets with supply and demand characteristics similar to the firm's existing drugs. Larger revenue markets, markets with more hospital sales, and products that treat chronic conditions attract more entry. The simultaneous nature of entry leads to an additional interpretation: specialization is profitable because of the severe risk to profits when a market is "overentered." However, I am unable to make any conclusions about the efficiency of entry decisions.
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.
Bibliographic InfoArticle provided by The RAND Corporation in its journal RAND Journal of Economics.
Volume (Year): 30 (1999)
Issue (Month): 3 (Autumn)
Contact details of provider:
Web page: http://www.rje.org
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Henry G. Grabowski & Margaret Kyle, 2007.
"Generic competition and market exclusivity periods in pharmaceuticals,"
Managerial and Decision Economics,
John Wiley & Sons, Ltd., vol. 28(4-5), pages 491-502.
- Grabowski, Henry & Kyle, Margaret, 2007. "Generic Competition and Market Exclusivity Periods in Pharmaceuticals," Open Access publications from University of Toulouse 1 Capitole http://neeo.univ-tlse1.fr, University of Toulouse 1 Capitole.
- repec:ind:iispdp:11-02 is not listed on IDEAS
- James W Hughes & Michael J Moore & Edward A Snyder, 2003.
"Napsterizing Pharmaceuticals: Access, Innovation and Consumer Welfare,"
Levine's Working Paper Archive
618897000000000555, David K. Levine.
- James W. Hughes & Michael J. Moore & Edward A. Snyder, 2002. ""Napsterizing" Pharmaceuticals: Access, Innovation, and Consumer Welfare," NBER Working Papers 9229, National Bureau of Economic Research, Inc.
- Mo Xiao & Ying Fan, 2012. "Entry under Subsidy: the Competitive U.S. Local Telephone Industry," 2012 Meeting Papers 374, Society for Economic Dynamics.
- Ching, Andrew, 2008.
"Consumer Learning and Heterogeneity: Dynamics of Demand for Prescription Drugs after Patent Expiration,"
7265, University Library of Munich, Germany.
- Ching, Andrew T., 2010. "Consumer learning and heterogeneity: Dynamics of demand for prescription drugs after patent expiration," International Journal of Industrial Organization, Elsevier, vol. 28(6), pages 619-638, November.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ().
If references are entirely missing, you can add them using this form.