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Pharmaceutical Pricing Strategies

 Jie Chen & John Rizzo
  22nd-May-2009
Description: Pharmaceuticals account for a significant share of health care expenditures in the United States. The rapid increase in pharmaceutical spending has generated great interest and controversy over drug pricing. It appears that the degree of product differentiation and nature of repeat purchase arrangements affect the decision to engage in skimming or penetration pricing strategies. Higher quality products tend to adopt skimming strategies while more modest products engage in penetration strategies.
Views: 3842
Domain: Medical
Category: Biotech/Pharma
Contents:
Introduction

Entry Pricing and Product Quality: The Case of Antidepressant Drugs
Jie Chen & John Rizzo
Stony Brook University, Economics Department June 5, 2007 Annual Research Meeting

Pharmaceuticals account for a significant share of health care expenditures in the United States. In 2003, Americans spent $179.2 billion on prescription drugs, almost 4.5 times the $40.3 billion spent in 1990.

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