Generic entry before and after reference prices

• This paper studies the effect of the reference pricing system on generic entry in markets where brand name pharmaceuticals lose patent protection. I find the likelihood of generic entry after patent expiration to decrease, after the introduction of the reference pricing system. According to my estimates savings due to increased competition in markets affected by the reference pricing system may have been outbalanced by higher prices, due to less competition in markets where the reference pricing system led to deterred entry.

Subject headings

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

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

Publication and Content Type

ovr (subject category)

vet (subject category)