The role of the government's participation constraint in the relationship between the price of the medicine and the patients' co-payment

Olga Rozanova

Economics Bulletin, 2021, vol. 41, issue 3, 1690-1696

Abstract: In the paper the relationship between the price of the drug set by the monopolist and the level of the patients' co-payment is reconsidered. I highlight the role of the government's participation constraint when studying this correspondence. I provide an alternative explanation for why the price of the pharmaceutical can be an increasing function of the level of the patients' co-payment.

Keywords: price of the pharmaceutical; co-payment; participation constraint of the payer (search for similar items in EconPapers)
JEL-codes: D4 I1 (search for similar items in EconPapers)
Date: 2021-09-17
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