Taking the competitor's pill: when combination therapies enter pharmaceutical markets
Autor(a) principal: | |
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Data de Publicação: | 2023 |
Outros Autores: | , |
Tipo de documento: | Artigo |
Idioma: | eng |
Título da fonte: | Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) |
Texto Completo: | https://hdl.handle.net/1822/87308 |
Resumo: | We study the competitive effects of combination therapies in pharmaceutical markets, which crucially hinge on the additional therapeutic value of combinatory use of drugs and the therapeutic substitutability with the most relevant monotherapy. With large additional therapeutic value,the introduction of combination therapies leads to higher prices and, somewhat paradoxically, may reduce the health plan´s surplus. Although combination therapies imply that drugs become both substitutes and complements, we show that drug prices increase if the firms are allowed to coordinate their prices. Allowing for price discrimination might increase allocational effciency, but only at the expense of higher purchasing costs. |
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Taking the competitor's pill: when combination therapies enter pharmaceutical marketsPharmaceutical marketsCombination therapiesTherapeutic competitionWe study the competitive effects of combination therapies in pharmaceutical markets, which crucially hinge on the additional therapeutic value of combinatory use of drugs and the therapeutic substitutability with the most relevant monotherapy. With large additional therapeutic value,the introduction of combination therapies leads to higher prices and, somewhat paradoxically, may reduce the health plan´s surplus. Although combination therapies imply that drugs become both substitutes and complements, we show that drug prices increase if the firms are allowed to coordinate their prices. Allowing for price discrimination might increase allocational effciency, but only at the expense of higher purchasing costs.Straume acknowledges financial support from National Funds of the FCT - Portuguese Foundation for Science and Technology within the project UIDB/03182/2020.Universidade do Minho. Núcleo de Investigação em Políticas Económicas (NIPE)Universidade do MinhoBrekke, Kurt R.Dalen, Dag MortenStraume, Odd Rune20232023-01-01T00:00:00Zinfo:eu-repo/semantics/publishedVersioninfo:eu-repo/semantics/articleapplication/pdfhttps://hdl.handle.net/1822/87308enghttps://nipe.eeg.uminho.pt/publicacoes-nipe/#documentos-de-trabalhoinfo:eu-repo/semantics/openAccessreponame:Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)instname:Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãoinstacron:RCAAP2023-11-25T01:17:28Zoai:repositorium.sdum.uminho.pt:1822/87308Portal AgregadorONGhttps://www.rcaap.pt/oai/openaireopendoar:71602024-03-19T23:19:41.002569Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) - Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãofalse |
dc.title.none.fl_str_mv |
Taking the competitor's pill: when combination therapies enter pharmaceutical markets |
title |
Taking the competitor's pill: when combination therapies enter pharmaceutical markets |
spellingShingle |
Taking the competitor's pill: when combination therapies enter pharmaceutical markets Brekke, Kurt R. Pharmaceutical markets Combination therapies Therapeutic competition |
title_short |
Taking the competitor's pill: when combination therapies enter pharmaceutical markets |
title_full |
Taking the competitor's pill: when combination therapies enter pharmaceutical markets |
title_fullStr |
Taking the competitor's pill: when combination therapies enter pharmaceutical markets |
title_full_unstemmed |
Taking the competitor's pill: when combination therapies enter pharmaceutical markets |
title_sort |
Taking the competitor's pill: when combination therapies enter pharmaceutical markets |
author |
Brekke, Kurt R. |
author_facet |
Brekke, Kurt R. Dalen, Dag Morten Straume, Odd Rune |
author_role |
author |
author2 |
Dalen, Dag Morten Straume, Odd Rune |
author2_role |
author author |
dc.contributor.none.fl_str_mv |
Universidade do Minho |
dc.contributor.author.fl_str_mv |
Brekke, Kurt R. Dalen, Dag Morten Straume, Odd Rune |
dc.subject.por.fl_str_mv |
Pharmaceutical markets Combination therapies Therapeutic competition |
topic |
Pharmaceutical markets Combination therapies Therapeutic competition |
description |
We study the competitive effects of combination therapies in pharmaceutical markets, which crucially hinge on the additional therapeutic value of combinatory use of drugs and the therapeutic substitutability with the most relevant monotherapy. With large additional therapeutic value,the introduction of combination therapies leads to higher prices and, somewhat paradoxically, may reduce the health plan´s surplus. Although combination therapies imply that drugs become both substitutes and complements, we show that drug prices increase if the firms are allowed to coordinate their prices. Allowing for price discrimination might increase allocational effciency, but only at the expense of higher purchasing costs. |
publishDate |
2023 |
dc.date.none.fl_str_mv |
2023 2023-01-01T00:00:00Z |
dc.type.status.fl_str_mv |
info:eu-repo/semantics/publishedVersion |
dc.type.driver.fl_str_mv |
info:eu-repo/semantics/article |
format |
article |
status_str |
publishedVersion |
dc.identifier.uri.fl_str_mv |
https://hdl.handle.net/1822/87308 |
url |
https://hdl.handle.net/1822/87308 |
dc.language.iso.fl_str_mv |
eng |
language |
eng |
dc.relation.none.fl_str_mv |
https://nipe.eeg.uminho.pt/publicacoes-nipe/#documentos-de-trabalho |
dc.rights.driver.fl_str_mv |
info:eu-repo/semantics/openAccess |
eu_rights_str_mv |
openAccess |
dc.format.none.fl_str_mv |
application/pdf |
dc.publisher.none.fl_str_mv |
Universidade do Minho. Núcleo de Investigação em Políticas Económicas (NIPE) |
publisher.none.fl_str_mv |
Universidade do Minho. Núcleo de Investigação em Políticas Económicas (NIPE) |
dc.source.none.fl_str_mv |
reponame:Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) instname:Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação instacron:RCAAP |
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Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação |
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RCAAP |
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RCAAP |
reponame_str |
Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) |
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Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) |
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Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) - Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação |
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1799135495427457024 |