Generic entry, price competition, and market segmentation in the prescription drug market-A comment

Izabela Jelovac

Working Papers from HAL

Abstract: In this note, we revise the condition in (Regan, 2008), which ensures the occurrence of a generic paradox in her theoretical model. We show that this condition derives from the analysis of an interior solution while it actually excludes the existence of an interior solution. Therefore, this note invalidates the possibility of a generic paradox within the model of (Regan, 2008). However, this conclusion does absolutely not invalidate the results of the rich empirical analysis of the generic paradox in (Regan, 2008).

Date: 2025-04-17
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