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Our calculations indicate that currently proposed U.S. policies to reduce pharmaceutical prices, though particularly beneficial for low-income and elderly populations, could dramatically reduce firms' investment in highly welfare-improving R&D. The U.S. subsidizes the worldwide pharmaceutical...
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This paper analyzes the optimal content regulation of direct-to-consumer advertisement (DTCA) in a pharmaceutical … typical subjective symptoms under enlightenment DTCA. The content regulation changes the nature of market competition and the … of the content regulation is ambiguous and depends, among other things, on the cost effectiveness of advertisement and …
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