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The price premium of generic to brand-names and pharmaceutical price index

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The price premium of generic pharmaceuticals to brand-names is examined under different competitive market situations. The result of this study shows that the number, market share, and the age of both brand-name and generic products have the most explanatory power for explaining the price premium. This study further applies this method to a pharmaceutical price index in order to explain 'Drug Price Index Perplexities.'
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Document Type: Research Article

Affiliations: School of Business and Economics University College of the Cariboo Kamloops British Columbia Canada V2C 5N3, Email: ykong@cariboo.bc.ca

Publication date: 2004-04-01

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