The Impact of Generic Competition on Brand Name Market Shares: Evidence from Micro Data
AbstractThis paper analyses how market shares for brand name drugs are affected by generic competition. The analysis is based on micro data for twelve different original drugs, which are all subject to generic competition. For five of these drugs, we find that the price of the original relative to the average price of the generic substitutes significantly affects the market share of the original. In addition, the introduction of a so called "reference price" system appears to have had a significant impact on the market shares of five original drugs.
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Bibliographic InfoPaper provided by Stockholm School of Economics in its series Working Paper Series in Economics and Finance with number 274.
Length: 21 pages
Date of creation: 22 Oct 1998
Date of revision:
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More information through EDIRC
Pharmaceutical industry; patent expiration; micro data.;
Find related papers by JEL classification:
- I11 - Health, Education, and Welfare - - Health - - - Analysis of Health Care Markets
- L65 - Industrial Organization - - Industry Studies: Manufacturing - - - Chemicals; Rubber; Drugs; Biotechnology
This paper has been announced in the following NEP Reports:
- NEP-ALL-1998-10-26 (All new papers)
- NEP-HEA-1998-10-26 (Health Economics)
- NEP-TID-1998-10-26 (Technology & Industrial Dynamics)
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