(), Mats A. Bergman
() and Niklas Rudholm
Thomas Aronsson: Department of Economics, Postal: University of Umeå, SE-901 87 Umeå, Sweden
Mats A. Bergman: Dept. of Economics, Stockholm School of Economics, Postal: P.O. Box 6501, SE-113 83 Stockholm, Sweden
Niklas Rudholm: Department of Economics, Postal: University of Umeå, SE-901 87 Umeå, Sweden
Abstract: This paper analyses how market shares for brand name drugs are affected by generic competition. The analysis is based on micro data for twelve different original drugs, which are all subject to generic competition. For five of these drugs, we find that the price of the original relative to the average price of the generic substitutes significantly affects the market share of the original. In addition, the introduction of a so called "reference price" system appears to have had a significant impact on the market shares of five original drugs.
21 pages, October 22, 1998
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