Scandinavian Working Papers in Economics

Working Paper Series,
Research Institute of Industrial Economics

No 1325: Price Dynamics of Swedish Pharmaceuticals

Aljoscha Janssen ()
Additional contact information
Aljoscha Janssen: Singapore Management University, Postal: and Research Institute of Industrial Economics, Stockholm, Sweden

Abstract: This paper investigates price patterns of off-patent pharmaceuticals in Sweden. I show that price dynamics are dependent on the number of competitors in the market. The price patterns follow predictions from a model of dynamic price competition in which the demand for pharmaceuticals incorporates the known biases of consumers: habit persistence and brand preferences. Using the regulated market of Swedish pharmaceuticals, I show that price may help in identifying possible tacit collusion by manufacturers in markets where consumers experience behavioral frictions.

Keywords: Pharmaceutical pricing; Dynamic oligopoly; State dependence; Price cycles

JEL-codes: D43; I11; L13; L40

42 pages, March 18, 2020

Full text files 

wp1325.pdf PDF-file Full text

Download statistics

Questions (including download problems) about the papers in this series should be directed to Elisabeth Gustafsson ()
Report other problems with accessing this service to Sune Karlsson ().

This page generated on 2024-02-05 17:12:21.