Demand for pharmaceutical drugs: A choice modelling experiment
AbstractDespite the importance of supplier inducement and brand loyalty in the drug purchasing process, little empirical evidence is to be found with regard to the influence that these factors exert on patients’ decisions. Under the new scenario of easier access to information, patients are becoming more demanding and even go as far as questioning their physicians’ prescription. Furthermore, new regulation also encourages patients to adopt an active role in the decision between brand-name and generic drugs. Using a stated preference model based on a choice survey, I have found evidence of how significant physicians’ prescription and pharmacists’ recommendation become throughout the drug purchase process and, to what extent, brand loyalty influences the final decision. As far as we are aware, this paper is the first to explicitly take consumers’ preferences into account rather than focusing on the behavior of health professionals.
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Bibliographic InfoPaper provided by Department of Economics and Business, Universitat Pompeu Fabra in its series Working Papers, Research Center on Health and Economics with number 704.
Date of creation: Jun 2003
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Web page: http://www.econ.upf.edu/
Brand loyalty; demand inducement; drug price elasticity; discrete choice experiment;
Find related papers by JEL classification:
- I11 - Health, Education, and Welfare - - Health - - - Analysis of Health Care Markets
- D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
- C93 - Mathematical and Quantitative Methods - - Design of Experiments - - - Field Experiments
This paper has been announced in the following NEP Reports:
- NEP-ALL-2004-05-16 (All new papers)
- NEP-COM-2004-05-16 (Industrial Competition)
- NEP-DCM-2004-05-16 (Discrete Choice Models)
- NEP-HEA-2004-05-16 (Health Economics)
- NEP-MIC-2004-05-16 (Microeconomics)
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