-patent pharmaceuticals. We present a theoretical model with price-sensitive and loyal consumers that shows that a decrease in the reference … price affects the consumers' co-payments in a non-monotonic way: For high reference prices, a marginally lower reference … price may lead to lower co-payments. However, for low reference prices a further reduction may result into higher consumer …

(patients pay a percentage of the price), under pharmaceutical parallel trade, i.e. trade outside the manufacturer's authorized … distribution channel, in a two-country model with a vertical distributor relationship. Parallel trade generates a price …-decreasing competition effect in the destination country and a price-increasing double marginalization effect in the source country. An …