Brekke, Kurt R.; Canta, Chiara; Straume, Odd Rune - Institutt for samfunnsøkonomi, Norges Handelshøyskole … - 2015
In this paper we study the e¤ect of reference pricing on pharmaceutical prices and expenditures when generic entry is endogenously determined. We develop a Salop-type model where a brand-name producer competes with generic producers in terms of prices. In the market there are two types of...