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Physicians prescribing originals causes welfare losses
Umeå University, Faculty of Social Sciences, Umeå School of Business and Economics (USBE), Economics.ORCID iD: 0000-0003-4467-8676
Umeå University, Faculty of Social Sciences, Umeå School of Business and Economics (USBE), Economics.ORCID iD: 0000-0003-1312-8073
2018 (English)In: Economics Letters, ISSN 0165-1765, E-ISSN 1873-7374, Vol. 170, p. 143-146Article in journal (Refereed) Published
Abstract [en]

We analyze 319,000 choices of medically equivalent drugs at Swedish pharmacies. The results show that patients dislike substitutions for the prescribed product and that this effect is larger when the prescribed product is an original. At the same time, patients have strong preferences to buy the cheapest generic product. This implies that patients in most cases buy the cheapest generic product and experience welfare losses when the physician has prescribed another product.

Place, publisher, year, edition, pages
Elsevier, 2018. Vol. 170, p. 143-146
Keywords [en]
Doctors, Pharmaceuticals, Prescription drugs, Generic drugs, Welfare
National Category
Economics
Research subject
Economics
Identifiers
URN: urn:nbn:se:umu:diva-150411DOI: 10.1016/j.econlet.2018.06.017ISI: 000442065400035OAI: oai:DiVA.org:umu-150411DiVA, id: diva2:1236984
Funder
The Jan Wallander and Tom Hedelius Foundation, P2016-0113:1Available from: 2018-08-07 Created: 2018-08-07 Last updated: 2018-09-11Bibliographically approved

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Granlund, DavidSundström, David

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