We study the impact of product margins on pharmacies' incentive to promote generics instead of brand-names. First, we … construct a theoretical model where pharmacies can persuade patients with a brand-name prescription to purchase a generic … producer and retail level. In the empirical analysis, we find a strong relationship between the margins of brand-names and …

We analyze the effects on consumers of an extreme policy experiment -- Napsterizing' pharmaceuticals -- whereby all … associated with greater access to the current stock of pharmaceuticals, future consumers will be harmed by reducing the flow of … new pharmaceuticals to the market. Our estimates of the consumer surpluses at stake are based on the stylized facts …