Reference Pricing Versus Co-Payment in the Pharmaceutical Industry: Price, Quality and Market Coverage

Marisa Miraldo ()

No 025cherp, Working Papers from Centre for Health Economics, University of York

Abstract: Within a horizontally differentiation model, we analyse the relative effects of reference pricing and copayment reimbursement on firms pricing and quality strategies as well as on market coverage under different market structures: competitive market, local monopolies and exogenous full market coverage. Results allow us to shed some light on the welfare and total drug expenditure implications of different drug reimbursement policies.

Keywords: Reference Pricing; Co-payment; Product Differentiation (search for similar items in EconPapers)
JEL-codes: D40 I11 O33 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-com, nep-hea and nep-mkt
Date: 2007-04
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Persistent link: http://EconPapers.repec.org/RePEc:chy:respap:25cherp

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