Pharmaceutical Generics, Vertical Product Differentiation, and Public Policy

Public Policy and Pharmaceutical Innovation

Historically, new drug introductions have played a central role in medical progress and the availability of cost-effective therapies. Nevertheless, public policy toward pharmaceuticals has been characterized in recent times by increasingly stringent regulatory controls, shorter effective patent terms, and increased encouragement of generic product usage. This has had an adverse effect on the in...

Product Differentiation and Public Education

Beginning with Tiebout (1956), numerous studies have argued that we should expect to see differences in public services among localities as a result of people “voting with their feet”. Here, we consider differentiation in public services as a way of reducing competition among localities (cities). If cities finance their public services with a property tax that generates “tax competition”, we fi...

Vertical product differentiation under demand uncertainty ¬リニ

Article history: Accepted 17 September 2013 JEL classifications: L13 L15

Dynamic Advertising under Vertical Product Differentiation∗

We investigate a dynamic advertising model where product quality is endogenous. In the differential game between single-product firms, there exists a parameter range where the low-quality firm uses a more efficient advertising technology and earns higher profits than the rival. Moreover, we show that equilibrium qualities are the same under duopoly, multiproduct monopoly and social planning, th...

Exclusive Contracts and Vertical Restraints: Empirical Evidence and Public Policy