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We study the interaction of customer capital and productivity through brand reallocation across firms. We develop a firm dynamics model with brands as transferable customer capital, heterogeneous firm productivity, and variable markups. We study the matching process between transferable brand...
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I consider an oligopoly model where, prior to price competition, firms invest in persuasive advertising and induce … advertising is introduced to homogeneous product markets, provides an alternative explanation for price dispersion phenomena …. Despite ex ante symmetry, the equilibrium profile of advertising outlays is asymmetric. It follows that endogenously …
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Current business models have struggled to support early-stage drug development. In this paper, we study an alternative financing model, the mega-fund structure, to fund drug discovery. We extend the framework proposed in previous studies to account for correlation between phase transitions in...
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Due to differences in the effectiveness and side effects of different drugs, uncertainty is an important component of prescription drug choice. This uncertainty can cause patients and doctors to experiment with different drugs until they find a good match. In this paper, we specify and estimate...
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This paper investigates whether aggregate consumer learning together with consumer heterogeneity in price sensitivity could explain why (i) there is a slow diffusion of generic drugs into the market, and (ii) brand-name originators keep increasing their prices over time even after the number of...
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Many countries with national health care providers and health insurances regulate the market for pharmaceuticals to … (no. of firms) suggests a significant but small negative correlation with prices. -- pharmaceuticals ; prices ; co …
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