NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH
loading...

The Economic Value and Pricing of Personalized Medicine

Tomas J. Philipson

Chapter in NBER book Economic Dimensions of Personalized and Precision Medicine (2019), Ernst R. Berndt, Dana P. Goldman, and John W. Rowe, editor (p. 9 - 19)
Conference held September 13-14, 2017
Published in April 2019 by University of Chicago Press
© 2019 by the National Bureau of Economic Research

We discuss the economic value of personalized medicine and the optimal pricing of the combination products involved. We build on previous work of Egan and Philipson (2015) who stress a link between rational adherence in health care and the value of personalized medicine. Personalized medicine converts experience goods to search goods by speeding up the learning process relative to trial and error. This explains the emergence of personalized medicine in cancer care as well as the timing of this emergence. It also predicts greater innovation- and merger incentives from Disneyland style two-part pricing of the combination products.

This chapter is no longer available for free download, since the book has been published. To obtain a copy, you must buy the book.
Order from Amazon.com

Machine-readable bibliographic record - MARC, RIS, BibTeX

Users who downloaded this chapter also downloaded* these:
Graves, Zhou, Garbett, and Peterson The Value of Pharmacogenomic Information
Berndt, Goldman, and Rowe Introduction to "Economic Dimensions of Personalized and Precision Medicine"
Gorry and Useche Orphan Drug Designations as Valuable Intangible Assets for IPO Investors in Pharma-Biotech Companies
Chandra, Garthwaite, and Stern w24026 Characterizing the Drug Development Pipeline for Precision Medicines
Berndt and Trusheim The Information Pharms Race and Competitive Dynamics of Precision Medicine: Insights from Game Theory
 
Publications
Activities
Meetings
NBER Videos
Themes
Data
People
About

National Bureau of Economic Research, 1050 Massachusetts Ave., Cambridge, MA 02138; 617-868-3900; email: info@nber.org

Contact Us