Reference pricing with elastic demand for pharmaceuticals

Gonçalves, Ricardo; Rodrigues, Vasco

Publication

Reference pricing with elastic demand for pharmaceuticals

2012Conference object

dc.contributor.author	Gonçalves, Ricardo
dc.contributor.author	Rodrigues, Vasco
dc.date.accessioned	2016-12-15T17:27:39Z
dc.date.available	2016-12-15T17:27:39Z
dc.date.issued	2012
dc.description.abstract	This paper analyzes pharmaceutical producers (of branded and generic drugs) pricing de- cisions in a context which combines the classical Hotelling framework (commonly adopted in the literature) with the possibility that consumers demands are price elastic. We analyze with particular interest two commonly adopted reimbursement mechanisms: xed percentage reim- bursement (FPR) and reference pricing (RP). We nd that assuming an elastic demand has a signi cant impact under a RP mechanism, as it allows rms to raise their prices when the copayment rate increases. Contrary to previous literature, we show that RP may be worse than FPR in terms of social welfare for su¢ ciently high copayment rates. From a policy viewpoint, our results indicate that the introduction of RP is not necessarily always bene cial (compared to FPR) and thus constitute a model towards which all reimbursement mechanisms should converge.	pt_PT
dc.description.version	info:eu-repo/semantics/draft	pt_PT
dc.identifier.citation	GONÇALVES, Ricardo; RODRIGUES, Vasco - Reference pricing with elastic demand for pharmaceuticals – In 6th Meeting of the Portuguese Economic Journal, Porto, Portugal, 6-7 Julho, 2012. – In Meeting of the Portuguese Economic Journal. Porto: UP, 2012. 21 p.	pt_PT
dc.identifier.uri	http://hdl.handle.net/10400.14/21062
dc.language.iso	eng	pt_PT
dc.rights.uri	http://creativecommons.org/licenses/by/4.0/	pt_PT
dc.subject	Reference pricing	pt_PT
dc.subject	Reimbursement mechanisms	pt_PT
dc.subject	Elastic demand	pt_PT
dc.title	Reference pricing with elastic demand for pharmaceuticals	pt_PT
dc.type	conference object
dspace.entity.type	Publication
oaire.awardURI	info:eu-repo/grantAgreement/FCT/3599-PPCDT/PTDC%2FEGE-ECO%2F100296%2F2008/PT
oaire.citation.title	Meeting of the Portuguese Economic Journal
oaire.fundingStream	3599-PPCDT
person.familyName	Gonçalves
person.familyName	Rodrigues
person.givenName	Ricardo
person.givenName	Vasco
person.identifier.ciencia-id	961B-2928-7C07
person.identifier.ciencia-id	0F16-A0B2-47B9
person.identifier.orcid	0000-0002-8457-4479
person.identifier.orcid	0000-0001-6991-2129
person.identifier.rid	B-6098-2009
person.identifier.scopus-author-id	36243474900
person.identifier.scopus-author-id	7101600493
project.funder.identifier	http://doi.org/10.13039/501100001871
project.funder.name	Fundação para a Ciência e a Tecnologia
rcaap.rights	openAccess	pt_PT
rcaap.type	conferenceObject	pt_PT
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