Taking the competitor's pill: when combination therapies enter pharmaceutical markets

Detalhes bibliográficos
Autor(a) principal: Brekke, Kurt R.
Data de Publicação: 2023
Outros Autores: Dalen, Dag Morten, Straume, Odd Rune
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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spelling 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)
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repository.name.fl_str_mv Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) - Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação
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