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Drug pricing and risk sharing agreements

Stefano Capri and Rosella Levaggi

Working Papers from University of Brescia, Department of Economics

Abstract: In the recent past some forms of risk sharing agreements have been used in some countries in drug pricing. In this note we present a specific risk sharing agreement on effectiveness and show how such mechanism is going to affect the market in the long run. In particular, we will show how the regulator may create a trade off between expected afficacy and the number of patients to be treated using the pricing formula.

Date: 2008
New Economics Papers: this item is included in nep-hea and nep-ind
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Citations: View citations in EconPapers (9)

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