Economics at your fingertips  

Demand estimation and merger simulations for drugs: Logits v. AIDS

Farasat A.S. Bokhari and Franco Mariuzzo

International Journal of Industrial Organization, 2018, vol. 61, issue C, 653-685

Abstract: We use ADHD drugs sales data from 2000–2003 and compare estimates of elasticities and merger simulations from three different demand models. Models include logit, random coefficients logit, and conditional AIDS demand model with multistage budgeting. The magnitude of cross-price elasticities is larger in the third model in comparison to the first two, and some of the cross-price elasticities are estimated to be negative. Hypothetical merger simulations show larger price effects for the multistage AIDS model in comparison to the discrete choice models.

Keywords: Demand systems; AIDS demand; Logit; Random coefficients logit; Merger simulations; Psychostimulant drugs (search for similar items in EconPapers)
JEL-codes: L41 K21 I11 (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link:

DOI: 10.1016/j.ijindorg.2018.01.005

Access Statistics for this article

International Journal of Industrial Organization is currently edited by P. Bajari, B. Caillaud and N. Gandal

More articles in International Journal of Industrial Organization from Elsevier
Bibliographic data for series maintained by Haili He ().

Page updated 2020-05-02
Handle: RePEc:eee:indorg:v:61:y:2018:i:c:p:653-685