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Generic substitution policy, an incentive approach

Author

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  • Aida Isabel Tavares

    (CEISUC, Center of Studies and Research in Health of the University of Coimbra)

Abstract

Generic substitution policy has been adopted in several countries in order to control health expenditures. Using a model based on incentives, this work aims to analyze the response of doctors and pharmaceutical companies to the implementation of this policy. It is shown that after the implementation of GSP, the effort of doctor’s convincing the patient to take generics increase or decrease depending on his level of concern for patient well-being; pharmaceutical companies decrease the amount of detailing and the market share of generics tends to increase.

Suggested Citation

  • Aida Isabel Tavares, 2017. "Generic substitution policy, an incentive approach," Computational and Mathematical Organization Theory, Springer, vol. 23(2), pages 199-220, June.
    • Handle: RePEc:spr:comaot:v:23:y:2017:i:2:d:10.1007_s10588-016-9223-3
    DOI: 10.1007/s10588-016-9223-3
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    References listed on IDEAS

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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Generic substitution policy; Incentives; Drugs market;
    All these keywords.

    JEL classification:

    • I19 - Health, Education, and Welfare - - Health - - - Other
    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design

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