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Determinants of drug prices and expenditures

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Author Info

  • William S. Comanor

    (Professor of Health Services, UCLA School of Public Health and Professor of Economics)

  • Stuart O. Schweitzer

    (Professor of Health Services, UCLA School of Public Health)

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    Abstract

    The process by which pharmaceuticals are bought and sold is exceedingly complex. The major reason is that most consumers do not pay directly for the drugs they consume. Intermediaries are generally present who purchase pharmaceuticals from their manufacturers and have them provided to their subscribers or affiliates. The products themselves, however, are generally supplied by the same pharmacies used by cash purchasers. The purpose of this paper is to describe and examine these markets. Copyright © 2007 John Wiley & Sons, Ltd.

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    File URL: http://hdl.handle.net/10.1002/mde.1346
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    Bibliographic Info

    Article provided by John Wiley & Sons, Ltd. in its journal Managerial and Decision Economics.

    Volume (Year): 28 (2007)
    Issue (Month): 4-5 ()
    Pages: 357-370

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    Handle: RePEc:wly:mgtdec:v:28:y:2007:i:4-5:p:357-370

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    Web page: http://www3.interscience.wiley.com/cgi-bin/jhome/7976

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    1. Zvi Griliches & Iain Cockburn, 1995. "Generics and New Goods in Pharmaceutical Price Indexes," NBER Working Papers 4272, National Bureau of Economic Research, Inc.
    2. DiMasi, Joseph A. & Hansen, Ronald W. & Grabowski, Henry G., 2003. "The price of innovation: new estimates of drug development costs," Journal of Health Economics, Elsevier, vol. 22(2), pages 151-185, March.
    3. Z. John Lu & William S. Comanor, 1998. "Strategic Pricing Of New Pharmaceuticals," The Review of Economics and Statistics, MIT Press, vol. 80(1), pages 108-118, February.
    4. Giaccotto, Carmelo & Santerre, Rexford E & Vernon, John A, 2005. "Drug Prices and Research and Development Investment Behavior in the Pharmaceutical Industry," Journal of Law and Economics, University of Chicago Press, vol. 48(1), pages 195-214, April.
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