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The price premium of generic to brand-names and pharmaceutical price index

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  • Ying Kong

Abstract

The price premium of generic pharmaceuticals to brand-names is examined under different competitive market situations. The result of this study shows that the number, market share, and the age of both brand-name and generic products have the most explanatory power for explaining the price premium. This study further applies this method to a pharmaceutical price index in order to explain 'Drug Price Index Perplexities.'

Suggested Citation

  • Ying Kong, 2004. "The price premium of generic to brand-names and pharmaceutical price index," Applied Economics, Taylor & Francis Journals, vol. 36(7), pages 731-737.
    • Handle: RePEc:taf:applec:v:36:y:2004:i:7:p:731-737
    DOI: 10.1080/0003684042000222106
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    References listed on IDEAS

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    1. Wiggins, Steven N & Raboy, David G, 1996. "Price Premia to Name Brands: An Empirical Analysis," Journal of Industrial Economics, Wiley Blackwell, vol. 44(4), pages 377-388, December.
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    Cited by:

    1. Laurent Granier & S颡stien Trinquard, 2012. "Predation in off-patent drug markets," Applied Economics, Taylor & Francis Journals, vol. 44(17), pages 2171-2186, June.
    2. Ferrara, Ida & Missios, Paul, 2012. "Pricing of drugs with heterogeneous health insurance coverage," Journal of Health Economics, Elsevier, vol. 31(2), pages 440-456.
    3. Aidan Hollis, 2005. "How do Brands’ “Own Generics” Affect Pharmaceutical Prices?," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 27(4), pages 329-350, December.
    4. Laurent Granier & Sébastien Trinquard, 2011. "Predation in Off-Patent Drug Markets," Post-Print hal-00687806, HAL.
    5. Ferrara, Ida & Kong, Ying, 2008. "Can health insurance coverage explain the generic competition paradox?," Economics Letters, Elsevier, vol. 101(1), pages 48-52, October.
    6. Ying Kong, 2009. "Competition between brand‐name and generics – analysis on pricing of brand‐name pharmaceutical," Health Economics, John Wiley & Sons, Ltd., vol. 18(5), pages 591-606, May.
    7. Nabin Munirul Haque & Mohan Vijay & Nicholas Aaron & Sgro Pasquale M., 2012. "Therapeutic Equivalence and the Generic Competition Paradox," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 12(1), pages 1-26, November.

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