Kamphorst, Jurjen; Karamychev, Vladimir A. - 2021 - This version: January 11, 2021
our theory is the health care market, where drug prices can be very high. Our model predicts that monopoly prices for …We offer a theory of how the combination of budget constraints and insurance drives up prices. A natural context for … orphan drugs are inversely related to the prevalence up until a maximum price. This is supported by empirical evidence in the …