IDEAS home Printed from https://ideas.repec.org/p/upf/upfses/704.html
   My bibliography  Save this paper

Demand for pharmaceutical drugs: A choice modelling experiment

Author

Listed:
  • Anna Merino

Abstract

Despite 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.

Suggested Citation

  • Anna Merino, 2003. "Demand for pharmaceutical drugs: A choice modelling experiment," Working Papers, Research Center on Health and Economics 704, Department of Economics and Business, Universitat Pompeu Fabra.
  • Handle: RePEc:upf:upfses:704
    as

    Download full text from publisher

    File URL: https://econ-papers.upf.edu/papers/704.pdf
    File Function: Whole Paper
    Download Restriction: no

    References listed on IDEAS

    as
    1. 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.
    2. 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 435-462, July.
    3. 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.
    4. Coscelli, Andrea, 2000. "The Importance of Doctors' and Patients' Preferences in the Prescription Decision," Journal of Industrial Economics, Wiley Blackwell, vol. 48(3), pages 349-369, September.
    5. 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.
    6. 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.
    7. 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.
    8. 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.
    9. 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.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Aida Isabel Tavares, 0. "Generic substitution policy, an incentive approach," Computational and Mathematical Organization Theory, Springer, vol. 0, pages 1-22.
    2. Frank R. Lichtenberg, 2007. "Importation And Innovation," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 16(6), pages 403-417.
    3. Johanna Vásquez Velásquez & José Vicente Cadavid Herrera & Andrés Ramírez Hassan & Karoll Gómez Portilla, 2013. "Elasticidad de la demanda por medicamentos en el mercado farmacéutico privado en Colombia," REVISTA ECOS DE ECONOMÍA, UNIVERSIDAD EAFIT, June.
    4. Karolin Becker & Peter Zweifel, 2005. "Cost Sharing in Health Insurance: An Instrument for Risk Selection?," SOI - Working Papers 0513, Socioeconomic Institute - University of Zurich.
    5. 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.
    6. 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.

    More about this item

    Keywords

    Brand loyalty; demand inducement; drug price elasticity; discrete choice experiment;

    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

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:upf:upfses:704. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (). General contact details of provider: http://www.econ.upf.edu/ .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.