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, even total welfare may decline as a result of the introduction of a rebate scheme. In addition to leading to higher prices …, rebate schemes may hurt consumers by inducing them to buy a higher quantity than they otherwise would. The belief that …
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duopoly or one where the sellers' discount factor is very high …
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commercial and Medicare Advantage plans. Using data on net-of-rebate prices and quantities from a large Pharmacy Benefits Manager … year after introduction, but do not differentially impact net-of-rebate prices, at least in the short-run. To quantify the …
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