In the recent past some forms of risk sharing agreements have been used in some countries in drug pricing. In this note we present a specific risk sharing agreement on effectiveness and show how such mechanism is going to affect the market in the long run. In particular, we will show how the regulator may create a trade off between expected afficacy and the number of patients to be treated using the pricing formula.
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Paper provided by University of Brescia, Department of Economics in its series Working Papers with number
0810.