We study actual and potential competition and other factors that determine price paths of brand‐name drugs in the Swedish pharmaceuticals market. The results indicate that the price of the incumbent product is lowered by potential competition, entry of (additional) generics, and the introduction of a so‐called reference‐price system. We also identify a ‘ratchet’ effect, through which price regulation makes entry‐deterring limit‐pricing credible.
No takes yet. Share an insight, caveat, or question.
Bergman et al. (2003) studied this question.
Synapse has enriched 5 closely related papers on similar clinical questions. Consider them for comparative context: