TY  - JOUR
AU  - Frank,Richard G.
AU  - Salkever,David S.
TI  - "Generic Entry and the Pricing of Pharmaceuticals"
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 5306
PY  - 1997
Y2  - May 1997
UR  - http://www.nber.org/papers/w5306
L1  - http://www.nber.org/papers/w5306.pdf
N1  - Author contact info:
Richard Frank
Department of Health Care Policy
Harvard Medical School
180 Longwood Avenue
Boston, MA 02115
Tel: 617/432-0178
Fax: 617/432-1219
E-Mail: frank@hcp.med.harvard.edu

David S. Salkever
UMBC
Department of Public Policy
1000 Hilltop Circle, Public Policy 418
Baltimore, MD  21250
Tel: 410/455-8459
Fax: 410-455-8066
E-Mail: salkever@umbc.edu
AB  - During the 1980s the share of prescriptions sold by retail pharmacies that was accounted for by generic products roughly doubled. The price response to generic entry of brand-name products has been a source of controversy.  In this paper we estimate models of price responses to generic entry in the market for brand-name and generic drugs.  We study a sample of 32 drugs that lost patent protection during the early to mid-1980s.  Our results provide strong evidence that brand-name prices increase after entry and are accompanied by large price decreases in the price of generic drugs.
ER  -