Drug price differentials caused by de-listing and price cap policies

Joan-Ramon Borrell

No 70, Working Papers in Economics from Universitat de Barcelona. Espai de Recerca en Economia

Abstract: This paper analyses the behaviour of pharmaceutical companies that face the threat of having their drugs excluded from reimbursement and the markets characterised also by price caps. We conclude that price elasticity of demand and cost differentials cause the price discounts which drug firms offer to health care organisations. Additionally, we conclude that price cap regulations affect the time path of prices, resulting in higher prices for new products and lower prices for old products.

JEL-codes: H42 H51 I18 (search for similar items in EconPapers)
Pages: 23 pages
Date: 2001
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Persistent link: https://EconPapers.repec.org/RePEc:bar:bedcje:200170

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