CHARACTERISTICS OF DEMAND FOR PHARMACEUTICAL PRODUCTS - AN EXAMINATION OF 4 CEPHALOSPORINS

Authors
ELLISON SF COCKBURN I GRILICHES Z HAUSMAN J
Citation
Sf. Ellison et al., CHARACTERISTICS OF DEMAND FOR PHARMACEUTICAL PRODUCTS - AN EXAMINATION OF 4 CEPHALOSPORINS, The Rand journal of economics, 28(3), 1997, pp. 426-446
Citations number
27
Categorie Soggetti
Economics
Journal title
The Rand journal of economics → ACNP
ISSN journal
07416261
Volume
28
Issue
3
Year of publication
1997
Pages
426 - 446
Database
ISI
SICI code
0741-6261(1997)28:3<426:CODFPP>2.0.ZU;2-Z
Abstract
We model demand for four cephalosporins and compute own- and cross-pri ce elasticities between branded and generic versions of the four drugs . We model demand as a multistage budgeting problem, and we argue that such a model is appropriate to the multistage nature of the purchase of pharmaceutical products, in particular the prescribing and dispensi ng stages, We find quite high elasticities between generic substitutes and also significant elasticities between some therapeutic substitute s.