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Price competition in pharmaceuticals: evidence from 1303 Swedish markets
Umeå universitet, Samhällsvetenskapliga fakulteten, Handelshögskolan vid Umeå universitet, Nationalekonomi.ORCID-id: 0000-0003-4467-8676
Södertörn University, Sweden.ORCID-id: 0000-0001-5026-9479
2017 (Engelska)Rapport (Övrigt vetenskapligt)
Abstract [en]

We study the short- and long-term price effects of number of competing firms using panel-data on 1303 distinct pharmaceutical markets for 78 months. This is done using 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 is increased from 1 to 10. Half of this reduction takes 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 reduces their price by 29% in the long term but by only 2% in the short term.

Ort, förlag, år, upplaga, sidor
Umeå University, 2017. , s. 28
Serie
Umeå economic studies, ISSN 0348-1018 ; 952
Nyckelord [en]
Price competition, dynamic, adjustment, pharmaceutical industry, generic drugs, brand-name drugs
Nationell ämneskategori
Nationalekonomi
Forskningsämne
nationalekonomi
Identifikatorer
URN: urn:nbn:se:umu:diva-141138OAI: oai:DiVA.org:umu-141138DiVA, id: diva2:1152689
Forskningsfinansiär
Konkurrensverket, 395/2015Tillgänglig från: 2017-10-26 Skapad: 2017-10-26 Senast uppdaterad: 2024-01-18Bibliografiskt granskad

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Granlund, DavidBergman, Mats

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