Scandinavian Working Papers in Economics

Umeå Economic Studies,
Umeå University, Department of Economics

No 462: The Impact of Generic Competition on Brand Name Market Shares - Evidence from Micro Data

Thomas Aronsson (), Mats Bergman and Niklas Rudholm ()
Additional contact information
Thomas Aronsson: Department of Economics, Umeå University, Postal: S 901 87 Umeå, Sweden
Mats Bergman: Stockholm School of Economics
Niklas Rudholm: Department of Economics, Umeå University, Postal: S 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 original drugs, wich 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

Keywords: Pharmeceutical industry; Patent expiration; micro data.

JEL-codes: I11; L65

21 pages, February 27, 1998

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