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Advisor(s)
Abstract(s)
A puzzling feature of pharmaceuticals markets is that sellers of branded
drugs will, sometimes, sell generic versions of their own branded products,
either directly or through license agreements. This paper proposes a new
theoretical rationale for the fact that the introduction of these pseudo-
generics may have anti-competitive e¤ects. In a model that combines
horizontal and vertical product di¤erentiation, we show that the producer
of the branded product will not sell the pseudo-generic unless faced with
competition and that, if she does so, in some circumstances, all prices
raise to the bene t of all competitors and the detriment of consumers.
Description
Keywords
Pseudo-Generics Product differentiation Pharmaceutical pricing
Citation
RODRIGUES, Vasco; GONÇALVES, Ricardo; VASCONCELOS, Hélder - Anticompetitive Impact of Pseudogenerics. - In 5th Annual Meeting of the Portuguese Economic Journal, Aveiro, Portugal, 8-9 July. – In Labour Economics 1. Aveiro: PEJ MEETING, 2011. 16p.