Uncertainty in the generic versus brand name prescription decision

• 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.

Ämnesord

SAMHÄLLSVETENSKAP  -- Ekonomi och näringsliv -- Nationalekonomi (hsv//swe)

SOCIAL SCIENCES  -- Economics and Business -- Economics (hsv//eng)

Nyckelord

Uncertainty

Generic drugs

Prescription behaviour

Economics

Nationalekonomi

Economics

nationalekonomi

Complex Systems – Microdata Analysis

Publikations- och innehållstyp

ref (ämneskategori)

art (ämneskategori)