Königbauer, Ingrid - In: CESifo economic studies : CESifo, a joint initiative of … 52 (2006) 3, pp. 565-586
The effect of price regulation on generic market entry and welfare in the presence of (persuasive) advertising is analysed. An incumbent has the possibility to invest in advertising targeted at the physician. Advertising creates vertical product differentiation between brand-name drugs and its...