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The Impact of Generic Competition on Brand Name Market Shares: Evidence from Micro Data

Author

Listed:
  • Aronsson, Thomas

    () (Department of Economics)

  • Bergman, Mats A.

    () (Dept. of Economics, Stockholm School of Economics)

  • Rudholm, Niklas

    () (Department of Economics)

Abstract

This paper analyses how market shares for brand name drugs are affected by generic competition. The analysis is based on micro data for twelve different original drugs, which are all subject to generic competition. For five of these drugs, we find that the price of the original relative to the average price of the generic substitutes significantly affects the market share of the original. In addition, the introduction of a so called "reference price" system appears to have had a significant impact on the market shares of five original drugs.

Suggested Citation

  • Aronsson, Thomas & Bergman, Mats A. & Rudholm, Niklas, 1998. "The Impact of Generic Competition on Brand Name Market Shares: Evidence from Micro Data," SSE/EFI Working Paper Series in Economics and Finance 274, Stockholm School of Economics.
  • Handle: RePEc:hhs:hastef:0274
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    More about this item

    Keywords

    Pharmaceutical industry; patent expiration; micro data.;

    JEL classification:

    • I11 - Health, Education, and Welfare - - Health - - - Analysis of Health Care Markets
    • L65 - Industrial Organization - - Industry Studies: Manufacturing - - - Chemicals; Rubber; Drugs; Biotechnology; Plastics

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