It is well known that existence of monopoly is accompanied by economic inefficiency in the form of dead weight loss and … reduced consumer surplus. The consumer surplus that exists in case of perfect competition gets reduced in case of monopoly; as … a part of it goes to the monopolist in the form of monopoly profit, a part of it is lost in the form of deadweight loss …

copayments (specific reimbursements). We show that the induced equilibrium with copayments involves a lower producer price and a … higher level of welfare for consumers. This results provides strong support for a reference price based reimbursement policy. …