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Generic Entry and the Pricing of Pharmaceuticals (1997)

Frank, Richard G. ; Salkever, David S.

Oxford, UK : Blackwell Publishing Ltd.

Journal of economics & management strategy 6 (1997), S. 0

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ISSN: 1530-9134

Source: Blackwell Publishing Journal Backfiles 1879-2005

Topics: Economics

Notes: 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.

Type of Medium: Electronic Resource

URL: http://dx.doi.org/10.1111/j.1430-9134.1997.00075.x

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