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.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
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
Date of revision:
Contact details of provider:
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)
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.:
- Ellison, S & Cockburn, I & Griliches, A & Hausman, J, 1996.
"Characteristics of Demand for Pharmaceutical Products : an Examination of four Cephalosporins,"
96-24, Massachusetts Institute of Technology (MIT), Department of Economics.
- Sara Ellison Fisher & Iain Cockburn & Zvi Griliches & Jerry Hausman, 1997. "Characteristics of Demand for Pharmaceutical Products: An Examination of Four Cephalosporins," RAND Journal of Economics, The RAND Corporation, vol. 28(3), pages 426-446, Autumn.
- Armantier Olivier & Namoro Soiliou, 2006. "Prescription Drug Advertising and Patient Compliance: A Physician Agency Approach," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 6(1), pages 1-41, September.
- Coscelli, Andrea, 2000. "The Importance of Doctors' and Patients' Preferences in the Prescription Decision," Journal of Industrial Economics, Wiley Blackwell, vol. 48(3), pages 349-69, September.
- Hausman, Jerry A. & Ruud, Paul A., 1987. "Specifying and testing econometric models for rank-ordered data," Journal of Econometrics, Elsevier, vol. 34(1-2), pages 83-104.
- Paul Ellickson & Scott Stern & Manuel Trajtenberg, 1999.
"Patient Welfare and Patient Compliance: An Empirical Framework for Measuring the Benefits from Pharmaceutical Innovation,"
NBER Working Papers
6890, National Bureau of Economic Research, Inc.
- Paul Ellickson & Scott Stern & Manuel Trajtenberg, 2001. "Patient Welfare and Patient Compliance -- An Empirical Framework for Measuring the Benefits from Pharmaceutical Innovation," NBER Chapters, in: Medical Care Output and Productivity, pages 539-564 National Bureau of Economic Research, Inc.
- Beggs, S. & Cardell, S. & Hausman, J., 1981. "Assessing the potential demand for electric cars," Journal of Econometrics, Elsevier, vol. 17(1), pages 1-19, September.
- Hanley, Nick & Mourato, Susana & Wright, Robert E, 2001. " Choice Modelling Approaches: A Superior Alternative for Environmental Valuation?," Journal of Economic Surveys, Wiley Blackwell, vol. 15(3), pages 435-62, July.
- Dulleck, Uwe & Kerschbamer, Rudolf, 2001.
"On Doctors, Mechanics and Computer Specialists. Or Where are the Problems with Credence Goods?,"
CEPR Discussion Papers
3016, C.E.P.R. Discussion Papers.
- Uwe Dulleck & Rudolf Kerschbamer, 2001. "On Doctors, Mechanics and Computer Specialists Or Where are the Problems with Credence Goods?," Vienna Economics Papers 0101, University of Vienna, Department of Economics.
- Fredrik Carlsson & Peter Martinsson, 2003. "Design techniques for stated preference methods in health economics," Health Economics, John Wiley & Sons, Ltd., vol. 12(4), pages 281-294.
- Anna Merino, 2003. "Eliciting consumers preferences using stated preference discrete choice models: Contingent ranking versus choice experiment," Economics Working Papers 705, Department of Economics and Business, Universitat Pompeu Fabra.
- Karolin Becker & Peter Zweifel, 2005. "Cost Sharing in Health Insurance: An Instrument for Risk Selection?," SOI - Working Papers 0513, Socioeconomic Institute - University of Zurich.
- Anna Merino, 2003. "Eliciting consumers preferences using stated preference discrete choice models: Contingent ranking versus choice experiment," Working Papers, Research Center on Health and Economics 705, Department of Economics and Business, Universitat Pompeu Fabra.
- Frank R. Lichtenberg, 2007.
"Importation And Innovation,"
Economics of Innovation and New Technology,
Taylor & Francis Journals, vol. 16(6), pages 403-417.
If references are entirely missing, you can add them using this form.