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Reference Pricing Versus Co-Payment in the Pharmaceutical Industry: Price, Quality and Market Coverage

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Author Info
Marisa Miraldo (Centre for Health Economics, University of York)

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Abstract

Within a horizontally differentiation model, we analyse the relative effects of reference pricing and copayment reimbursement on firms pricing and quality strategies as well as on market coverage under different market structures: competitive market, local monopolies and exogenous full market coverage. Results allow us to shed some light on the welfare and total drug expenditure implications of different drug reimbursement policies.

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File URL: http://www.york.ac.uk/inst/che/pdf/rp25.pdf
File Format: application/pdf
File Function: First version, 2007
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Publisher Info
Paper provided by Centre for Health Economics, University of York in its series Working Papers with number 025cherp.

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Length: 43 pages
Date of creation: Apr 2007
Date of revision:
Handle: RePEc:chy:respap:25cherp

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Related research
Keywords: Reference Pricing; Co-payment; Product Differentiation;

Find related papers by JEL classification:
D40 - Microeconomics - - Market Structure and Pricing - - - General
I11 - Health, Education, and Welfare - - Health - - - Analysis of Health Care Markets
O33 - Economic Development, Technological Change, and Growth - - Technological Change - - - Technological Change: Choices and Consequences; Diffusion Processes

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References listed on IDEAS
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. d'Aspremont, C & Gabszewicz, Jean Jaskold & Thisse, J-F, 1979. "On Hotelling's "Stability in Competition"," Econometrica, Econometric Society, vol. 47(5), pages 1145-50, September. [Downloadable!] (restricted)
  2. Economides, Nicholas, 1984. "The principle of minimum differentiation revisited," European Economic Review, Elsevier, vol. 24(3), pages 345-368, April. [Downloadable!] (restricted)
  3. Kurt R. Brekke & Robert Nuscheler & Odd Rune Straume, 2006. "Quality and Location Choices under Price Regulation," Journal of Economics & Management Strategy, Blackwell Publishing, vol. 15(1), pages 207-227, 03. [Downloadable!] (restricted)
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(explanations, 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. Vincenzo Atella & Jay Bhattacharya & Lorenzo Carbonari, 2008. "Pharmaceutical industry, drug quality and regulation. Evidence from US and Italy," CEIS Research Paper 138, Tor Vergata University, CEIS, revised 16 Dec 2008. [Downloadable!]
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