-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 …

is served better at a lower price. Based on a joint inventory and pricing model and an empirical analysis, it shows that …