Cristin-resultat-ID: 1026438
Sist endret: 28. august 2013 10:19
NVI-rapporteringsår: 2013
Vitenskapelig artikkel

Margins and market shares: Pharmacy incentives for generic substitution

  • Kurt Brekke
  • Tor Helge Holmås og
  • Odd Rune Straume


European Economic Review
ISSN 0014-2921
e-ISSN 1873-572X
NVI-nivå 2

Om resultatet

Vitenskapelig artikkel
Publiseringsår: 2013
Volum: 61
Sider: 116 - 131


Isi-ID: 000320479900008

Beskrivelse Beskrivelse


Margins and market shares: Pharmacy incentives for generic substitution


We study the impact of product margins on pharmacies’ incentive to promote generics instead of brand-names. First, we construct a theoretical model where pharmacies can persuade patients with a brand-name prescription to purchase a generic version instead. We show that pharmacies’ substitution incentives are determined by relative margins and relative patient copayments. Second, we exploit a unique product level panel data set, which contains information on sales and prices at both producer and retail level. In the empirical analysis, we find a strong relationship between the margins of brand- names and generics and their market shares. This relationship is stronger for pharma- ceuticals under reference pricing rather than coinsurance. In terms of policy implications, our results suggest that pharmacy incentives are crucial for promoting generic sales.


Kurt Richard Brekke

Bidragsyterens navn vises på dette resultatet som Kurt Brekke
  • Tilknyttet:
    ved Institutt for samfunnsøkonomi ved Norges Handelshøyskole

Tor Helge Holmås

  • Tilknyttet:
    ved NORCE Samfunn ved NORCE Norwegian Research Centre AS

Odd Rune Straume

  • Tilknyttet:
    ved Institutt for økonomi ved Universitetet i Bergen
  • Tilknyttet:
    ved Universidade do Minho
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