The generics paradox revisited: empirical evidence from regulated markets

Vandoros, Sotiris and Kanavos, Panos ORCID: 0000-0001-9518-3089 (2013) The generics paradox revisited: empirical evidence from regulated markets. Applied Economics, 45 (22). pp. 3230-3239. ISSN 0003-6846

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Abstract

Earlier studies have pointed at the presence of a generics paradox in the US prescription drug market. This article tests whether the generics paradox also holds in the presence of pricing and reimbursement regulation in six European prescription drug markets. Using proprietary pricing and market share data, the results of panel data analysis suggest that the generics paradox also holds in these markets. Neither generic entry nor generic market penetration affect prices of originator drugs downwards, and prices of originator drugs actually increase post-generic entry.

Item Type:	Article
Official URL:	http://www.tandfonline.com/loi/raec20
Additional Information:	© 2012 Taylor & Francis Group
Divisions:	European Institute Social Policy LSE Health
Subjects:	H Social Sciences > HC Economic History and Conditions R Medicine > RM Therapeutics. Pharmacology
JEL classification:	I - Health, Education, and Welfare > I1 - Health > I18 - Government Policy; Regulation; Public Health L - Industrial Organization > L1 - Market Structure, Firm Strategy, and Market Performance > L11 - Production, Pricing, and Market Structure; Size Distribution of Firms L - Industrial Organization > L5 - Regulation and Industrial Policy > L52 - Industrial Policy; Sectoral Planning Methods L - Industrial Organization > L6 - Industry Studies: Manufacturing > L65 - Chemicals; Rubber; Drugs; Biotechnology
Date Deposited:	13 Jul 2012 13:15
Last Modified:	01 Nov 2024 05:23
URI:	http://eprints.lse.ac.uk/id/eprint/44854

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