Reference Pricing Versus Co-Payment in the Pharmaceutical Industry: Price, Quality and Market Coverage
AbstractWithin 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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Bibliographic InfoPaper provided by Centre for Health Economics, University of York in its series Working Papers with number 025cherp.
Length: 43 pages
Date of creation: Apr 2007
Date of revision:
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; Research and Development; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
This paper has been announced in the following NEP Reports:
- NEP-ALL-2008-02-16 (All new papers)
- NEP-COM-2008-02-16 (Industrial Competition)
- NEP-HEA-2008-02-16 (Health Economics)
- NEP-MKT-2008-02-16 (Marketing)
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