Lakdawalla, Darius; Sood, Neeraj; Gu, Qian - In: Journal of Health Economics 32 (2013) 6, pp. 1356-1367
advertising. When insurance expansions make markets more profitable, firms respond by boosting advertising. Theory suggests this … advertising. Empirically, we find that the implementation of Part D coincides with a 14–19% increase in total advertising … expenditures. This effect is indeed concentrated in the least competitive drug classes. The additional advertising raised …