Towards an Efficient Mechanism for Prescription Drug Procurement
AbstractThis paper applies ideas from mechanism design to model procurement of prescription drugs. We present a mechanism for government-funded market-driven drug procurement that achieves very close to full static efficiency -- all members have access to all but at most a single drug -- without distorting incentives for innovation.
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Date of creation: Feb 2009
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Find related papers by JEL classification:
- D44 - Microeconomics - - Market Structure and Pricing - - - Auctions
- I11 - Health, Education, and Welfare - - Health - - - Analysis of Health Care Markets
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