Entry in the ADHD drugs market
نویسندگان
چکیده
We use a novel approach to identify price effects in a differentiated products demand system for drugs used to treat ADHD and find that the demand for ADHD drugs is elastic and there are significant substitution possibilities within and across molecules and delivery mechanisms. The first-time introduction of a generic drug shows large welfare gains due to expansion of the market to price sensitive consumers. The welfare gains due to the introduction of me-too drugs vary by the novelty of the drug and can be as large as those of the introduction of a generic.
منابع مشابه
Entry in the Adhd Drugs Market: Welfare Impact of Generics and Me-too's*
Recent decades have seen a growth in treatments for attention deficit hyperactivity disorder (ADHD) including many branded and generic drugs. In the early 2000's, new drug entry dramatically altered market shares. We estimate a demand system for ADHD drugs and assess the welfare impact of new drugs. We find that entry induced large welfare gains by reducing prices of substitute drugs, and by pr...
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