This paper examines the relationship between drug price and drug quality and how it varies across two of the most common regulatory regimes in the pharmaceutical market: Minimum Efficacy Standards (MES) and a mix of Minimum Efficacy Standards and Price Controls mechanisms (MES PC). Through a...

This paper examines the relationship between drug price and drug quality and how it varies across two of the most common regulatory regimes in the pharmaceutical market: minimum efficacy standards (MES) and a mix of minimum efficacy standards and price control mechanisms (MES+PC). Through a...

The aim of this article is to analyze the relationship between drug price and drug quality and how it varies across two of the most common regulatory regimes in the pharmaceutical market: Minimum Efficacy Standards (MES) and Price Controls (PC). We develop a model of adverse selection where a...

Drugs and drug prices -- The American way to discover drugs -- The drug industry today -- Are drug companies risky? -- How not to lower drug prices -- Squandering R&D resources -- How to lower drug prices -- Our solution in detail