By introducing n (1) firms with infinite cross-price elasticity (i.e. generic drugs), we explore the effects of competition on the optimal pricing strategies under a Reference Pricing Scheme (RPS). A two-stage model repeated infinite number of times is presented. When stage 1 is competitive, the...

In a pharmaceuticals Reference Price Scheme (RPS), firms are free to set their prices, but the (insured) consumer pays only the difference between the Reference level (R) and the actual price of the drug, if this is higher than R.By introducing n (1) firms with infinite cross-price elasticity...

In a pharmaceutical Reference Price Scheme (RPS), firms are free to set their prices, but the (insured) consumer pays only the difference between the Reference level (R) and the actual price of the drug, if this is higher than R. By introducing n ( 1) firms with in nite cross-price elasticity...

The goal of the present study is to assess the awarded prices and thus the real level of competition the regional tenders referring to biosimilars in Italy achieved.