consider a duopolistic model with one firm producing the brand-name drug, whose patent has already expired, and the other … price mechanism on the level of competition between brand-name and generic drugs and national pharmaceutical spending. We … consumers face heterogeneous switching costs.We show that brand producers compensate the decline of profits by selling greater …

key role of switching costs. A discontinuity surrounding patent expirations establishes that the effect is causal. Further … brand premia. A unique feature of the Swedish market allows me to rule out patients' inattention due to information costs as … everyone acts as a medical expert and experiences fewer brand premia, prices decrease …

increasing their market share, some brand-name firms produce generics themselves, called pseudo-generics. We develop a Cournot … duopoly model by considering the pseudo-generics production as a mergers’ catalyst. We show that a brand-name company always … has an incentive to purchase its competitor. The key insight of this paper is that the brand-name laboratory can increase …