Maini, Luca
Reference pricing as a deterrent to entry evidence from the European pharmaceutical market / by Luca Maini and Fabio Pammolli
Resumen.
External reference pricing (ERP), the practice of benchmarking domestic drug prices to foreign prices, generates an incentive for firms to withhold products from low-income countries. Using a novel moment inequality approach, we estimate a structural model to measure how ERP policies affect access to innovative drugs across Europe. We find that ERP increases entry delays in eight low-income European countries by up to one year per drug. The European Union could remove these delays without replacing ERP by compensating firms through lump-sum transfers at the cost of around €18 million per drug.
MEDICAMENTOS
PRECIOS
MERCADO
OLIGOPOLIOS
EUROPA
MODELOS ECONOMETRICOS
Pammolli, Fabio
American Economic Journal : Microeconomics 1945-7669 v. 15, n. 2, May 2023, p. 345-383
Reference pricing as a deterrent to entry evidence from the European pharmaceutical market / by Luca Maini and Fabio Pammolli
Resumen.
External reference pricing (ERP), the practice of benchmarking domestic drug prices to foreign prices, generates an incentive for firms to withhold products from low-income countries. Using a novel moment inequality approach, we estimate a structural model to measure how ERP policies affect access to innovative drugs across Europe. We find that ERP increases entry delays in eight low-income European countries by up to one year per drug. The European Union could remove these delays without replacing ERP by compensating firms through lump-sum transfers at the cost of around €18 million per drug.
MEDICAMENTOS
PRECIOS
MERCADO
OLIGOPOLIOS
EUROPA
MODELOS ECONOMETRICOS
Pammolli, Fabio
American Economic Journal : Microeconomics 1945-7669 v. 15, n. 2, May 2023, p. 345-383