EconPapers    
Economics at your fingertips  
 

Substitution Policy and Generic Competition

Laura Birg

No 241, University of Göttingen Working Papers in Economics from University of Goettingen, Department of Economics

Abstract: I model the market for an active ingredient (with a brand-name drug and n differentiated generic versions) to study the effect of a substitution rule on prices and the extensive and intensive margin of generic competition. Both substitution rules with physician and patient veto decrease the brand-name price and shift market shares from the brand-name drug to the generics. A substitution rule with physician (patient) veto increases (decreases) generic prices and increases (decreases) the number of generic firms.

Keywords: substitution rule; generic competition (search for similar items in EconPapers)
JEL-codes: I11 I18 L50 (search for similar items in EconPapers)
Date: 2019
New Economics Papers: this item is included in nep-com, nep-ind and nep-reg
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
https://www.econstor.eu/bitstream/10419/194354/1/cege-dp241-revised.pdf (application/pdf)

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:zbw:cegedp:241

Access Statistics for this paper

More papers in University of Göttingen Working Papers in Economics from University of Goettingen, Department of Economics Contact information at EDIRC.
Bibliographic data for series maintained by ZBW - Leibniz Information Centre for Economics ().

 
Page updated 2022-11-14
Handle: RePEc:zbw:cegedp:241