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Uncertainty in the generic versus brand name prescription decision
Umeå University, Faculty of Social Sciences, Umeå School of Business.
Department of Economics, Dalarna University, 781 88 Borlänge Sweden..
2010 (English)In: Empirical Economics, ISSN 0377-7332, E-ISSN 1435-8921, Vol. 38, no 3, 503-521 p.Article in journal (Refereed) Published
Abstract [en]

This paper analyzes the impact of uncertainty concerning product qualityof generic drugs on the substitution behavior of prescribing physicians. It is shown thatuncertainty about the generic drug quality gives the physician a value of waiting formore information before switching to the generic version. In addition, it is shown thatreducing the approval requirements for generic drugs, thereby increasing uncertaintyabout quality, may discourage physicians from prescribing such drugs. An empiricalstudy testing the theoretical predictions is presented at the end of the paper.

Place, publisher, year, edition, pages
2010. Vol. 38, no 3, 503-521 p.
Keyword [en]
Uncertainty, Generic drugs, Prescription behaviour
National Category
Economics
Research subject
Economics
Identifiers
URN: urn:nbn:se:umu:diva-44237DOI: 10.1007/s00181-009-0277-7ISI: 000275753600001OAI: oai:DiVA.org:umu-44237DiVA: diva2:419526
Available from: 2011-05-27 Created: 2011-05-27 Last updated: 2017-12-11Bibliographically approved

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CiteExportLink to record
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