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. …

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

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 …

because of the resources diverted away from R and D into advertising. But these mechanisms generate opposite level effects on …

This paper studies advertising in vertically differentiated product markets with positive consumption externalities. In … consumers. In such markets, we show that firms will engage in advertising competition in order to convince consumers of their … levels of advertising. …