Generic substitution. Micro evidence from register data in Norway
The importance of prices, doctor and patient characteristics, and market institutions for the likelihood of choosing generic drugs instead of the more expensive original brand-name version were examined. Using an extensive dataset extracted from The Norwegian Prescription Database (NorPD) containing all prescriptions dispensed to individuals in February 2004 and 2006 on 23 different drugs (chemical substances) in Norway, we find strong evidence for the importance of both doctor and patient characteristics for the choice robabilities. The price difference between brand and generic versions and insurance coverage both affect generic substitution. Moreover, controlling for the retail chain affiliation of the dispensing pharmacy, we find that pharmacies play an important role in promoting generic substitution. In markets with more recent entry of generic drugs, the brand-name loyalty proves to be much stronger, giving less explanatory powerto our demand model. Length: 25 pages
|Date of creation:||Jan 2009|
|Date of revision:|
|Contact details of provider:|| Postal: |
Phone: +39 011670 4406
Fax: +39 011670 3895
Web page: http://www.unito.it/
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Kurt R. Brekke & Astrid L. Grasdal & Tor Helge Holmås, 2007.
"Regulation and Pricing of Pharmaceuticals: Reference Pricing or Price Cap Regulation?,"
CESifo Working Paper Series
2059, CESifo Group Munich.
- Brekke, Kurt R. & Grasdal, Astrid L. & Holms, Tor Helge, 2009. "Regulation and pricing of pharmaceuticals: Reference pricing or price cap regulation?," European Economic Review, Elsevier, vol. 53(2), pages 170-185, February.
- Brekke, Kurt R. & Grasdal, Astrid L. & Holmås, Tor Helge, 2006. "Regulation and Pricing of Pharmaceuticals: Reference Pricing or Price Cap Regulation?," Working Papers in Economics 14/06, University of Bergen, Department of Economics.
- Ernst R. Berndt, 2002. "Pharmaceuticals in U.S. Health Care: Determinants of Quantity and Price," Journal of Economic Perspectives, American Economic Association, vol. 16(4), pages 45-66, Fall.
- Richard G. Frank & David S. Salkever, 1995.
"Generic Entry and the Pricing of Pharmaceuticals,"
NBER Working Papers
5306, National Bureau of Economic Research, Inc.
- Coscelli, Andrea, 2000. "The Importance of Doctors' and Patients' Preferences in the Prescription Decision," Journal of Industrial Economics, Wiley Blackwell, vol. 48(3), pages 349-69, September.
- Judith K. Hellerstein, 1998. "The Importance of the Physician in the Generic Versus Trade-Name Prescription Decision," RAND Journal of Economics, The RAND Corporation, vol. 29(1), pages 108-136, Spring.
- Dag Dalen & Steinar Strøm & Tonje Haabeth, 2006.
"Price regulation and generic competition in the pharmaceutical market,"
The European Journal of Health Economics,
Springer, vol. 7(3), pages 204-211, September.
- Dalen, Dag Morten & Habeth, Tonje & Strøm, Steinar, 2009. "Price regulation and generic competition in the pharmaceutical market," HERO On line Working Paper Series 2006:1, Oslo University, Health Economics Research Programme.
- Dalen, Dag Morten & Strøm, Steinar & Haabeth, Tonje, 2005. "Price regulation and generic competition in the pharmaceutical market," Memorandum 33/2005, Oslo University, Department of Economics.
- Grabowski, Henry G & Vernon, John M, 1992. "Brand Loyalty, Entry, and Price Competition in Pharmaceuticals after the 1984 Drug Act," Journal of Law and Economics, University of Chicago Press, vol. 35(2), pages 331-50, October.
- Regan, Tracy L., 2008.
"Generic entry, price competition, and market segmentation in the prescription drug market,"
International Journal of Industrial Organization,
Elsevier, vol. 26(4), pages 930-948, July.
- Tracy L. Regan, 2007. "Generic entry, price competition, and market segmentation in the prescription drug market," Working Papers 2010-7, University of Miami, Department of Economics.
- Kenneth Train, 2003. "Discrete Choice Methods with Simulation," Online economics textbooks, SUNY-Oswego, Department of Economics, number emetr2, March.
When requesting a correction, please mention this item's handle: RePEc:uto:dipeco:200901. 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: (Piero Cavaleri)or (Marina Grazioli)
If references are entirely missing, you can add them using this form.