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Cartels, Spontaneous Price Discrimination and International Pharmacy Retailing

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  • W. Duncan Reekie
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    Abstract

    This paper examines the nature of pharmacy retail distribution in several different countries. Evidence in the market place supports the view that innovations in distribution technology are or could be plentiful; conversely, because of institutional rigidities bolstered by law, retail pharmacists in many countries are successfully participating in a cartel-like environment where those innovations are retarded. The outcome is often perverse. Retailers do not achieve economies of scale (a common argument in favour of cartels), while consumers do not experience the lower prices resulting from inter-firm rivalry (a common argument in favour of diffuse ownership)

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    File URL: http://www.tandfonline.com/10.1080/758523210
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    Bibliographic Info

    Article provided by Taylor & Francis Journals in its journal International Journal of the Economics of Business.

    Volume (Year): 4 (1997)
    Issue (Month): 3 ()
    Pages: 279-285

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    Handle: RePEc:taf:ijecbs:v:4:y:1997:i:3:p:279-285

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    Web page: http://www.tandfonline.com/CIJB20

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    Web: http://www.tandfonline.com/pricing/journal/CIJB20

    Related research

    Keywords: Pharmaceutical industry; Retail pharmacies; Antitrust policy; Health care; JEL classifications: K21; L41; L65; I11;

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    Cited by:
    1. Antonio Cabrales, 2003. "Pharmaceutical Generics, Vertical Product Differentiation, and Public Policy," Working Papers 54, Barcelona Graduate School of Economics.

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