Abstract
During the 1980s the share of prescriptions sold by retail pharmacies that was accounted for by generic products roughly doubled. The price response to generic entry of brand-name products has been a source of controversy. In this paper we estimate models of price responses to generic entry in the market for brand-name and generic drugs. We study a sample of 32 drugs that lost patent protection during the early to mid-1980s. Our results provide evidence that brand-name prices increase after generic entry and are accompanied by large decreases in the price of generic drugs.
| Original language | English (US) |
|---|---|
| Pages (from-to) | 75-90 |
| Number of pages | 16 |
| Journal | Journal of Economics and Management Strategy |
| Volume | 6 |
| Issue number | 1 |
| DOIs | |
| State | Published - 1997 |
| Externally published | Yes |
ASJC Scopus subject areas
- General Business, Management and Accounting
- Economics and Econometrics
- Strategy and Management
- Management of Technology and Innovation
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