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Price Discrimination in Practice: The Market for Drugs in Egypt and the U.S

Author

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  • Rania Zaher Naguib

    (Faculty of Management Technology, The German University in Cairo)

Abstract

This paper attempts to analyze the medical and economical reasons that cause a difference in the price elasticity of patients' demand to drugs between Egypt and the United States of America. The study was based on two medicines produced by Pfizer (Lipitor and Viagra), with both of them available in Egypt as well as the United States. The result of this study reflected that Egyptians are more sensitive to the changes in price relative to Americans for both Lipitor and Viagra because of different economical and medical factors.

Suggested Citation

  • Rania Zaher Naguib, 2010. "Price Discrimination in Practice: The Market for Drugs in Egypt and the U.S," Working Papers 20, The German University in Cairo, Faculty of Management Technology.
    • Handle: RePEc:guc:wpaper:20
    as

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    File URL: http://mgt.guc.edu.eg/wpapers/020zaher2010.pdf
    File Function: First version, 2010
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    References listed on IDEAS

    as
    1. Aaron S. Edlin & Mario Epelbaum & Walter P. Heller, 1998. "Is Perfect Price Discrimination Really Efficient?: Welfare and Existence in General Equilibrium," Econometrica, Econometric Society, vol. 66(4), pages 897-922, July.
    2. Elizabeth K. Kiser, 1998. "Heterogeneity in Price Sensitivity and Retail Price Discrimination," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 80(5), pages 1150-1153.
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    More about this item

    Keywords

    Price Discrimination; Pharmaceutical Industry;

    JEL classification:

    • I11 - Health, Education, and Welfare - - Health - - - Analysis of Health Care Markets
    • D42 - Microeconomics - - Market Structure, Pricing, and Design - - - Monopoly

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