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The relative importance of actual and potential competition: Empirical evidence from the pharmaceuticals market
Uppsala University, Disciplinary Domain of Humanities and Social Sciences, Faculty of Social Sciences, Department of Economics.
Department of Economics, Göteborg University.
2003 (English)In: Journal of industrial economics, ISSN 0022-1821, Vol. 51, no 4, 455-467 p.Article in journal (Refereed) Published
Abstract [en]

We study actual and potential competition and other factors that determine price paths of brand-name drugs in the Swedish pharmaceuticals market. The results indicate that the price of the incumbent product is lowered by potential competition, entry of (additional) generics, and the introduction of a so-called reference-price system. We also identify a 'ratchet' effect, through which price regulation makes entry-deterring limit-pricing credible.

Place, publisher, year, edition, pages
2003. Vol. 51, no 4, 455-467 p.
National Category
Economics
Research subject
Economics; Economics
Identifiers
URN: urn:nbn:se:uu:diva-108684DOI: 10.1111/j.0022-1821.2003.00210.xOAI: oai:DiVA.org:uu-108684DiVA: diva2:240266
Available from: 2009-09-26 Created: 2009-09-26 Last updated: 2010-06-28Bibliographically approved

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CiteExportLink to record
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Citation style
  • apa
  • ieee
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