NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

Towards an Efficient Mechanism for Prescription Drug Procurement

Kyna Fong, Michael Schwarz

NBER Working Paper No. 14718
Issued in February 2009
NBER Program(s):   HE

This paper applies ideas from mechanism design to model procurement of prescription drugs. We present a mechanism for government-funded market-driven drug procurement that achieves very close to full static efficiency -- all members have access to all but at most a single drug -- without distorting incentives for innovation.

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Document Object Identifier (DOI): 10.3386/w14718

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