Graduate School of Business, Marketing Dept
University of Chicago
5807 South Woodlawn Avenue, Chicago IL 60637
NBER Working Papers and Publications
|August 2008||Information, Learning, and Drug Diffusion: the Case of Cox-2 Inhibitors |
with Pradeep Chintadunta, Ginger Z. Jin: w14252
The recent withdrawal of Cox-2 Inhibitors has generated debate on the role of information in drug diffusion: can the market learn the efficacy of new drugs, or does it depend solely on manufacturer advertising and FDA updates? In this study, we use a novel data set to study the diffusion of three Cox-2 Inhibitors ? Celebrex, Vioxx and Bextra ? before the Vioxx withdrawal. Our study has two unique features: first, we observe each patient?s reported satisfaction after consuming a drug. This patient level data set, together with market level data on FDA updates, media coverage, academic articles, and pharmaceutical advertising, allows us to model individual prescription decisions. Second, we distinguish across-patient learning of a drug?s general efficacy from the within-patient learning of t...
Published: Quantitative Marketing and Economics, December 2009, Volume 7, Number 4, pp. 399-443.
This finished journal article is available here