The price premium of generic to brand-names and pharmaceutical price index

Ying Kong

Applied Economics, 2004, vol. 36, issue 7, 731-737

Abstract: The price premium of generic pharmaceuticals to brand-names is examined under different competitive market situations. The result of this study shows that the number, market share, and the age of both brand-name and generic products have the most explanatory power for explaining the price premium. This study further applies this method to a pharmaceutical price index in order to explain 'Drug Price Index Perplexities.'

Date: 2004
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DOI: 10.1080/0003684042000222106

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