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Generic entry, price competition, and market segmentation in the prescription drug market-A comment

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  • Izabela Jelovac

    (GATE Lyon Saint-Étienne - Groupe d'Analyse et de Théorie Economique Lyon - Saint-Etienne - UL2 - Université Lumière - Lyon 2 - UJM - Université Jean Monnet - Saint-Étienne - EM - EMLyon Business School - CNRS - Centre National de la Recherche Scientifique)

Abstract

In this note, we revise the condition in (Regan, 2008), which ensures the occurrence of a generic paradox in her theoretical model. We show that this condition derives from the analysis of an interior solution while it actually excludes the existence of an interior solution. Therefore, this note invalidates the possibility of a generic paradox within the model of (Regan, 2008). However, this conclusion does absolutely not invalidate the results of the rich empirical analysis of the generic paradox in (Regan, 2008).

Suggested Citation

  • Izabela Jelovac, 2025. "Generic entry, price competition, and market segmentation in the prescription drug market-A comment," Working Papers hal-05038524, HAL.
    • Handle: RePEc:hal:wpaper:hal-05038524
    Note: View the original document on HAL open archive server: https://hal.science/hal-05038524v1
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