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This paper studies the effect of two regulatory instruments - a price cap and a reference price system - a mandatory substitution rule, and the combination of both on generic competition in a Salop-type model with an off-patent brand-name drug and n differentiated generic versions. The price cap...
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This paper analyzes a maximum price system and a reference price system in a vertical differentiation model with a brand-name drug and a generic. In particular, both instruments are compared with respect to their performance in reducing public expenditure, limiting financial exposure of...
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manufacturer) on pharmaceutical regulation in a North-South framework with a firm's endogenous decision to export to the South … via reimbursement limits. Parallel trade may relax regulation in the source country of parallel imports (South) and … intensify regulation in the destination country (North): In the source country, parallel trade may relax regulation both under a …
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, inflation regulation can cause inflation to rise, but only because firms are reducing launch prices to make the regulation bind …
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