EconPapers    
Economics at your fingertips  
 

PARALLEL IMPORTS, INNOVATIONS AND NATIONAL WELFARE: THE ROLE OF THE SIZES OF INCOME CLASSES AND NATIONAL MARKETS FOR HEALTH CARE

Rajat Acharyya () and Maria Garcia-Alonso
Additional contact information
Rajat Acharyya: Department of Economics, Jadavpur University, Kolkata 700032, India

The Singapore Economic Review (SER), 2008, vol. 53, issue 01, 57-79

Abstract: This paper shows that regardless of any intra-country income differences, parallel imports result in a lower level of health-care innovation but, contrary to popular as well as conventional theoretical wisdom, alower pricein the Third World compared to market-based discrimination. Despite such a lower price, however, parallel imports unambiguously make all buyers in the Third World worse off when intra-country income disparity exists. On the other hand, even discarding the MNC's profit, there will be cases in which the richer country prefers price discrimination as well. That is, in those cases, no countries will have any incentive under the welfare criterion to undo price discrimination, contrary to Richardson (2002).

Keywords: Parallel imports; price discrimination; health-care innovation; market size; income distribution (search for similar items in EconPapers)
Date: 2008
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3) Track citations by RSS feed

Downloads: (external link)
http://www.worldscientific.com/doi/abs/10.1142/S0217590808002847
Access to full text is restricted to subscribers.

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: https://EconPapers.repec.org/RePEc:wsi:serxxx:v:53:y:2008:i:01:n:s0217590808002847

Ordering information: This journal article can be ordered from

DOI: 10.1142/S0217590808002847

Access Statistics for this article

The Singapore Economic Review (SER) is currently edited by Euston Quah

More articles in The Singapore Economic Review (SER) from World Scientific Publishing Co. Pte. Ltd.
Bibliographic data for series maintained by Tai Tone Lim ().

 
Page updated 2019-10-03
Handle: RePEc:wsi:serxxx:v:53:y:2008:i:01:n:s0217590808002847