David, Guy; Markowitz, Sara; Richards-Shubik, Seth - In: American Economic Journal: Economic Policy 2 (2010) 4, pp. 1-25
This paper analyzes the relationship between postmarketing promotional activity and reporting of adverse drug reactions (ADRs) by modeling the interaction between a regulator (the FDA) and a pharmaceutical firm. Promotion-driven market expansions enhance profitability yet may involve the risk of...