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Price competition in pharmaceuticals - Evidence from 1303 Swedish markets.
Umeå University.
Södertörns högskola, Institutionen för samhällsvetenskaper, Nationalekonomi.ORCID-id: 0000-0001-5026-9479
2018 (Engelska)Ingår i: Journal of Health Economics, ISSN 0167-6296, E-ISSN 1879-1646, Vol. 61, s. 1-12Artikel i tidskrift (Refereegranskat) Published
Abstract [en]

We study the short- and long-term price effects of the number of competing firms, using panel-data on 1303 distinct pharmaceutical markets for 78 months within a reference-price system. We use actual transaction prices in an institutional setting with little scope for non-price competition and where simultaneity problems can be addressed effectively. In the long term, the price of generics is found to decrease by 81% when the number of firms selling generics with the same strength, form and similar package size is increased from 1 to 10. Nearly only competition at this fine-grained level matters; the effect of firms selling other products with the same active substance, but with different package size, form, or strength, is only a tenths as large. Half of the price reductions take place immediately and 70% within three months. Also, prices of originals are found to react to competition, but far less and much slower.

Ort, förlag, år, upplaga, sidor
Elsevier, 2018. Vol. 61, s. 1-12
Nyckelord [en]
Adjustment, Brand-name drugs, Dynamic, Generic drugs, Generic substitution, Pharmaceutical industry, Price competition, Reference price
Nationell ämneskategori
Nationalekonomi
Identifikatorer
URN: urn:nbn:se:sh:diva-36014DOI: 10.1016/j.jhealeco.2018.06.009ISI: 000447106100001PubMedID: 30007260Scopus ID: 2-s2.0-85049755573OAI: oai:DiVA.org:sh-36014DiVA, id: diva2:1233766
Tillgänglig från: 2018-07-19 Skapad: 2018-07-19 Senast uppdaterad: 2020-04-01Bibliografiskt granskad

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Bergman, Mats A.

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