Research and Market Structure: Evidence from an Antibiotic-Resistant Pathogenic Outbreak

Mayank Aggarwal, Anindya Chakrabarti, Chirantan Chatterjee and Matthew Higgins

No 28840, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: Do upstream research shocks impact unconnected downstream product markets? We explore this question using a natural experiment involving a publication that identified a pathogenic outbreak in India involving a carbapenem antibiotic resistant superbug. Consistent with theory, we find that this upstream research shock caused multinational firms selling carbapenem antibiotics in India to reduce their downstream market exposure. Rational antibiotic stewardship implies that we should observe a similar response by domestic Indian firms. Surprisingly, we observe the opposite; domestic Indian firms filled the void in the market left by multinational firms. We confirm this aggregate finding with prescription level data, Indian physicians prescribed fewer focal multinational products relative to domestic firm products. Results are robust to alternate control groups and placebo testing. Implications for antibiotic resistance, global health policy and innovation policy are discussed.

JEL-codes: I18 L1 L65 (search for similar items in EconPapers)
Date: 2021-05
New Economics Papers: this item is included in nep-com
Note: PR
References: Add references at CitEc
Citations:

Published as Mayank Aggarwal & Anindya S. Chakrabarti & Chirantan Chatterjee & Matthew J. Higgins, 2023. "Research and market structure: Evidence from an antibiotic-resistant pathogenic outbreak," Research Policy, vol 52(1).

Downloads: (external link)
http://www.nber.org/papers/w28840.pdf (application/pdf)

Related works:
Journal Article: Research and market structure: Evidence from an antibiotic-resistant pathogenic outbreak (2023)
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:nbr:nberwo:28840

Ordering information: This working paper can be ordered from
http://www.nber.org/papers/w28840

Access Statistics for this paper

More papers in NBER Working Papers from National Bureau of Economic Research, Inc National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.. Contact information at EDIRC.
Bibliographic data for series maintained by ().