Pharmaceutical Price Controls and Entry Strategies
AbstractThis paper finds that the use of price controls has a statistically and quantitatively important effect on the extent and timing of the launch of new drugs. Firms headquartered in countries that regulate price reach fewer markets than those in countries without price controls. Companies avoid price-controlled markets, and are less likely to introduce products in additional markets after entering a price-controlled country. Launches into low-price European countries are further delayed following legalization of parallel imports. The results suggest that price regulation in one country affects entry into other countries, and may affect the strategies of domestic firms. Copyright by the President and Fellows of Harvard College and the Massachusetts Institute of Technology.
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Bibliographic InfoPaper provided by University of Toulouse 1 Capitole in its series Open Access publications from University of Toulouse 1 Capitole with number http://neeo.univ-tlse1.fr/2407/.
Date of creation: Feb 2007
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Publication status: Published in The Review of Economics and Statistics (2007-02) v.89, p.88-99
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Other versions of this item:
- Margaret K. Kyle, 2007. "Pharmaceutical Price Controls and Entry Strategies," The Review of Economics and Statistics, MIT Press, vol. 89(1), pages 88-99, February.
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.:
- Daron Acemoglu & Joshua Linn, 2004.
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- Margaret Kyle Author-Email: firstname.lastname@example.org Author-Workplace-Name: London Business School, 2006. "The Role of Firm Characteristics in Pharmaceutical Product Launches," RAND Journal of Economics, The RAND Corporation, vol. 37(3), pages 602-618, Autumn.
- Kyle, Margaret, 2006. "The Role of Firm Characteristics in Pharmaceutical Product Launches," Open Access publications from University of Toulouse 1 Capitole http://neeo.univ-tlse1.fr, University of Toulouse 1 Capitole.
- Danzon, Patricia M. & Chao, Li-Wei, 2000. "Cross-national price differences for pharmaceuticals: how large, and why?," Journal of Health Economics, Elsevier, vol. 19(2), pages 159-195, March.
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