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Role of Pharmacists in Generic Pharmaceutical Adoption

Author

Listed:
  • Haruo Kakehi

    (Graduate School of Economics, Keio University)

  • Ryo Nakajima

    (Faculty of Economics, Keio University)

Abstract

This study investigates how pharmacists dispense generic drugs by considering patients' brand preferences. While the literature shows that pharmacists, as experts, underestimate brand premiums, our data show that they frequently dispense brand-identical generics, known as authorized generics. We model patients' generic drug choices and pharmacies' dispensing decisions to explain how patients' brand preferences vary across pharmacies and to determine for-profit pharmacists' heterogeneous dispensing behavior. Using Japanese pharmacists' dispensing data, our empirical results show significant variations in patients' brand preferences and perceived differences in the quality of antibiotics. Furthermore, our findings show that one of the factors behind these differences is the provision of information by pharmacists.

Suggested Citation

  • Haruo Kakehi & Ryo Nakajima, 2024. "Role of Pharmacists in Generic Pharmaceutical Adoption," Keio-IES Discussion Paper Series 2024-015, Institute for Economics Studies, Keio University.
    • Handle: RePEc:keo:dpaper:2024-015
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    References listed on IDEAS

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    1. Janssen, Aljoscha & Granlund, David, 2023. "The importance of the first generic substitution: Evidence from Sweden," Journal of Economic Behavior & Organization, Elsevier, vol. 213(C), pages 1-25.
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    6. Silvia Appelt, 2015. "Authorized Generic Entry prior to Patent Expiry: Reassessing Incentives for Independent Generic Entry," The Review of Economics and Statistics, MIT Press, vol. 97(3), pages 654-666, July.
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    Keywords

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    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • I11 - Health, Education, and Welfare - - Health - - - Analysis of Health Care Markets
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • L65 - Industrial Organization - - Industry Studies: Manufacturing - - - Chemicals; Rubber; Drugs; Biotechnology; Plastics

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