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

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Author Info
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.'

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Article provided by Taylor and Francis Journals in its journal Applied Economics.

Volume (Year): 36 (2004)
Issue (Month): 7 (April)
Pages: 731-737
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Handle: RePEc:taf:applec:v:36:y:2004:i:7:p:731-737

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Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

  1. Landes, William M & Posner, Richard A, 1987. "Trademark Law: An Economic Perspective," Journal of Law & Economics, University of Chicago Press, vol. 30(2), pages 265-309, October.
  2. Wiggins, Steven N & Raboy, David G, 1996. "Price Premia to Name Brands: An Empirical Analysis," Journal of Industrial Economics, Blackwell Publishing, vol. 44(4), pages 377-88, December. [Downloadable!] (restricted)
  3. Klein, Benjamin & Leffler, Keith B, 1981. "The Role of Market Forces in Assuring Contractual Performance," Journal of Political Economy, University of Chicago Press, vol. 89(4), pages 615-41, August. [Downloadable!] (restricted)
  4. De Vany, Arthur S & Saving, Thomas R, 1983. "The Economics of Quality," Journal of Political Economy, University of Chicago Press, vol. 91(6), pages 979-1000, December. [Downloadable!] (restricted)
  5. Griliches, Zvi & Cockburn, Iain, 1994. "Generics and New Goods in Pharmaceutical Price Indexes," American Economic Review, American Economic Association, vol. 84(5), pages 1213-32, December. [Downloadable!] (restricted)
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  1. 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!]
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This page was last updated on 2010-1-1.


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