We present a Hotelling model of price and advertising competition between prescription drugs that differ in quality …/side e¤ects. Advertising results in the endogenous formation of two consumer groups: brand loyal and non-brand loyal ones. We … show that advertising strategies are strategic substitutes, with the better quality drugs being the ones that are most …

pharmaceuticals, specifically drug reformulation regulatory gaming. …

the hypothesis that innovation in pharmaceuticals is becoming more difficult and expensive over time, as costs of …

creating an internal market for pharmaceuticals can be analysed. In a model of third-degree price discrimination, arbitrage … Market in pharmaceuticals are ambiguous, since a movement from segmented and price-controlled markets towards integrated …

from the US, Germany and France to identify country-specific demand models and then recover price cost margins under the …-ulcer drugs that allows us to explore the drivers of demand, to identify whether regulation in France truly affects margins and … sales quantities by displacing part of the demand from generics to branded drugs. …

pharmaceuticals. We challenge this orthodox view and show, to the contrary, that the pace of innovation often is faster in a world …

This paper provides evidence that learning about demand is an important driver of firms' dynamics. We present a simple … model with Bayesian learning in which firms are uncertain about their idiosyncratic demand parameter in each of the markets … their beliefs following a new demand shock, the younger they are. To test this learning mechanism, we make use of a specific …

-shock specification, we identify, using sign restrictions, two non-policy shocks, demand and supply, and two policy shocks, monetary and … fiscal. We obtain the following results. (ii) Both supply and demand shocks are important sources of fluctuations; supply … prevails for GDP, while demand prevails for employment and inflation. (ii) Policy matters: Both monetary and fiscal policy …