Brekke, Kurt Richard; Holmås, Tor Helge; Straume, Odd Rune - Institutt for samfunnsøkonomi, Norges Handelshøyskole … - 2010
We study the impact of product margins on pharmacies’ incentive to promote generics instead of brand-names. First, we … construct a theoretical model where pharmacies can persuade patients with a brand-name prescription to purchase a generic … version instead. We show that pharmacies’substitution incentives are determined by relative margins and relative patient …