HERO On line Working Paper Series
Enrico Sorisio and Steinar Strøm
Innovation and market dynamics in the EPO market
Abstract: In this paper we study the demand and supply of
erythropoietin in four Nordic countries, using an econometric model based
on discrete choice and a random utility model. It measures the effect of
price changes as well as the loyalty of patients and physicians to a drug.
Our main aims are to estimate demand for EPO and to determine the degree of
competition in this Nordic market. The main motivation for this paper is to
analyze the impact of product innovation on market power and welfare, e.g.
on consumer and producer surplus. The product innovation is the entry of
Aranesp in the Nordic market.
Keywords: Discrete choice; demand for pharmaceuticals; monopolistic competition; EPO; (follow links to similar papers)
JEL-Codes: C35; D43; I18; L11; (follow links to similar papers)
31 pages, June 4, 2009
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