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Pseudo-generics and the generic competition paradox in a universal healthcare's prescription drug market

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  • Kenichi Ohkita

Abstract

This paper uses game theory to analyse the likelihood of the generic competition paradox in a universal healthcare's prescription drug market with and without the availability of a pseudo-generic. It is found that under certain conditions the price of the brand-name drug increases after patent expiry. The generic competition paradox is found to require full market coverage and to be more likely to occur with a larger difference in the perceived quality of the brand-name drug and its generic alternatives, higher marginal costs of production, or lower insurance coverage.

Suggested Citation

  • Kenichi Ohkita, 2016. "Pseudo-generics and the generic competition paradox in a universal healthcare's prescription drug market," International Journal of Business and Globalisation, Inderscience Enterprises Ltd, vol. 17(1), pages 111-122.
    • Handle: RePEc:ids:ijbglo:v:17:y:2016:i:1:p:111-122
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