umu.sePublications
Change search
CiteExportLink to record
Permanent link

Direct link
Cite
Citation style
  • apa
  • ieee
  • modern-language-association-8th-edition
  • vancouver
  • Other style
More styles
Language
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
  • sv-SE
  • Other locale
More languages
Output format
  • html
  • text
  • asciidoc
  • rtf
Price competition in pharmaceuticals – evidence from 1303 Swedish markets
Umeå University, Faculty of Social Sciences, Umeå School of Business and Economics (USBE), Economics.ORCID iD: 0000-0003-4467-8676
2017 (English)Conference paper, Oral presentation only (Other academic)
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. We use actual transaction prices in an institutional setting with little room for non-price competition and where simultaneity problem 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 sizes is increased from 1 to 10. It is nearly only competition on this fine-grained level that matters. For example, the price effect of firms selling other products with the same active substance, but with different package size, form, or strength, is only a tenth 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; going from 1 to 10 firms selling nearly identical generics reduces prices by 29% in the long term but by only 2% in the short term.

Place, publisher, year, edition, pages
2017.
Keywords [en]
Price competition, dynamic, adjustment, pharmaceutical industry, generic drugs, brand-name drugs
National Category
Economics
Research subject
Economics
Identifiers
URN: urn:nbn:se:umu:diva-141140OAI: oai:DiVA.org:umu-141140DiVA, id: diva2:1152698
Conference
The 44th Annual Conference of the European Association for Research in Industrial Economics (EARIE), Maastricht, The Netherlands.
Funder
Swedish Competition Authority, 395/2015Available from: 2017-10-26 Created: 2017-10-26 Last updated: 2018-06-09

Open Access in DiVA

No full text in DiVA

Authority records BETA

Granlund, David

Search in DiVA

By author/editor
Granlund, David
By organisation
Economics
Economics

Search outside of DiVA

GoogleGoogle Scholar

urn-nbn

Altmetric score

urn-nbn
Total: 67 hits
CiteExportLink to record
Permanent link

Direct link
Cite
Citation style
  • apa
  • ieee
  • modern-language-association-8th-edition
  • vancouver
  • Other style
More styles
Language
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
  • sv-SE
  • Other locale
More languages
Output format
  • html
  • text
  • asciidoc
  • rtf