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Role of Pharmacists in Generic Pharmaceutical Adoption

Author

Listed:
  • Haruo Kakehi

    (Graduate School of Economics, Keio University)

  • Ryo Nakajima

    (Faculty of Economics, Keio University)

Abstract

This study investigates how pharmacists dispense generic drugs by considering patients' brand preferences. While the literature shows that pharmacists, as experts, underestimate brand premiums, our data show that they frequently dispense brand-identical generics, known as authorized generics. We model patients' generic drug choices and pharmacies' dispensing decisions to explain how patients' brand preferences vary across pharmacies and to determine for-profit pharmacists' heterogeneous dispensing behavior. Using Japanese pharmacists' dispensing data, our empirical results show significant variations in patients' brand preferences and perceived differences in the quality of antibiotics. Furthermore, our findings show that one of the factors behind these differences is the provision of information by pharmacists.

Suggested Citation

  • Haruo Kakehi & Ryo Nakajima, 2024. "Role of Pharmacists in Generic Pharmaceutical Adoption," Keio-IES Discussion Paper Series 2024-015, Institute for Economics Studies, Keio University.
    • Handle: RePEc:keo:dpaper:2024-015
    as

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    File URL: https://ies.keio.ac.jp/upload/DP2024-015_EN.pdf
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    References listed on IDEAS

    as
    1. Mariana Carrera & Sofia Villas-Boas, 2023. "Generic Aversion and Observational Learning in the Over-the-Counter Drug Market," American Economic Journal: Applied Economics, American Economic Association, vol. 15(3), pages 380-410, July.
    2. Oscar Barriga Cabanillas & Jeffrey D. Michler & Aleksandr Michuda & Emilia Tjernström, 2018. "Fitting and interpreting correlated random-coefficient models using Stata," Stata Journal, StataCorp LP, vol. 18(1), pages 159-173, March.
    3. Silvia Appelt, 2015. "Authorized Generic Entry prior to Patent Expiry: Reassessing Incentives for Independent Generic Entry," The Review of Economics and Statistics, MIT Press, vol. 97(3), pages 654-666, July.
    4. Lemieux, Thomas, 1998. "Estimating the Effects of Unions on Wage Inequality in a Panel Data Model with Comparative Advantage and Nonrandom Selection," Journal of Labor Economics, University of Chicago Press, vol. 16(2), pages 261-291, April.
    5. James Heckman & Edward Vytlacil, 1998. "Instrumental Variables Methods for the Correlated Random Coefficient Model: Estimating the Average Rate of Return to Schooling When the Return is Correlated with Schooling," Journal of Human Resources, University of Wisconsin Press, vol. 33(4), pages 974-987.
    6. Fichera, Eleonora & von Hinke, Stephanie, 2020. "The response to nutritional labels: Evidence from a quasi-experiment," Journal of Health Economics, Elsevier, vol. 72(C).
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    More about this item

    Keywords

    generic pharmaceuticals; authorized generic; brand premiums; pharmacist behavior; information provision;
    All these keywords.

    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • I11 - Health, Education, and Welfare - - Health - - - Analysis of Health Care Markets
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • L65 - Industrial Organization - - Industry Studies: Manufacturing - - - Chemicals; Rubber; Drugs; Biotechnology; Plastics

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