The home market effect (HME) is commonly defined as a more than proportional supply response to a demand shock. Recent theoretical literature, however, shows that predictions from the traditional twocountry framework do not always survive in multi-country settings. This is because 'third'...

Differences in regulations, technical standards and national medical cultures across EU member states created a highly segmented pharmaceutical market in Europe prior to the implementation of the Single Market Programme. The subsequent reduction in non-tariff barriers to trade would be expected...