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The role of the government's participation constraint in the relationship between the price of the medicine and the patients' co-payment

Author

Listed:
  • Olga Rozanova

    (Russian Presidential Academy of National Economy and Public Administration (RANEPA))

Abstract

In the paper the relationship between the price of the drug set by the monopolist and the level of the patients' co-payment is reconsidered. I highlight the role of the government's participation constraint when studying this correspondence. I provide an alternative explanation for why the price of the pharmaceutical can be an increasing function of the level of the patients' co-payment.

Suggested Citation

  • Olga Rozanova, 2021. "The role of the government's participation constraint in the relationship between the price of the medicine and the patients' co-payment," Economics Bulletin, AccessEcon, vol. 41(3), pages 1690-1696.
    • Handle: RePEc:ebl:ecbull:eb-21-00147
    as

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    File URL: http://www.accessecon.com/Pubs/EB/2021/Volume41/EB-21-V41-I3-P144.pdf
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    More about this item

    Keywords

    price of the pharmaceutical; co-payment; participation constraint of the payer;
    All these keywords.

    JEL classification:

    • D4 - Microeconomics - - Market Structure, Pricing, and Design
    • I1 - Health, Education, and Welfare - - Health

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