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How do Opioid Prescribing Restrictions Affect Pharmaceutical Promotion? Lessons from the Mandatory Access Prescription Drug Monitoring Programs

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  • Thuy D. Nguyen
  • W. David Bradford
  • Kosali I. Simon

Abstract

Prior work considers effects of prescribing restrictions on opioid use but not upstream implications for pharmaceutical marketing activities, despite the inordinate role many believe marketing played in the crisis. Our study proposes a stylized model of pharmaceutical payments and investigates the impact of Mandatory Access Prescription Drug Monitoring Programs (MPDMPs) on opioid-specific commercial promotion directed at physicians. We find that MPDMPs reduce promotion on both extensive and intensive margins. Our results are consistent with economic theory, predicting lower promotional activities when return on investment decreases after state prescribing restrictions, and indicative of MPDMPs' role in affecting opioid use through reduced promotion.

Suggested Citation

  • Thuy D. Nguyen & W. David Bradford & Kosali I. Simon, 2019. "How do Opioid Prescribing Restrictions Affect Pharmaceutical Promotion? Lessons from the Mandatory Access Prescription Drug Monitoring Programs," NBER Working Papers 26356, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:26356
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    Cited by:

    1. Janssen, Aljoscha & Zhang, Xuan, 2020. "Retail Pharmacies and Drug Diversion during the Opioid Epidemic," Working Paper Series 1373, Research Institute of Industrial Economics.
    2. Lawler, Emily C. & Skira, Meghan M., 2022. "Information shocks and pharmaceutical firms’ marketing efforts: Evidence from the Chantix black box warning removal," Journal of Health Economics, Elsevier, vol. 81(C).
    3. Gupta, Sumedha & Nguyen, Thuy & Freeman, Patricia R. & Simon, Kosali, 2023. "Competitive effects of federal and state opioid restrictions: Evidence from the controlled substance laws," Journal of Health Economics, Elsevier, vol. 91(C).
    4. Svetlana Beilfuss & Sebastian Linde, 2021. "Pharmaceutical opioid marketing and physician prescribing behavior," Health Economics, John Wiley & Sons, Ltd., vol. 30(12), pages 3159-3185, December.
    5. Casey B. Mulligan, 2020. "Prices and Federal Policies in Opioid Markets," Working Papers 2020-10, Becker Friedman Institute for Research In Economics.
    6. Casey B. Mulligan, 2020. "Prices and Federal Policies in Opioid Markets," NBER Working Papers 26812, National Bureau of Economic Research, Inc.

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    JEL classification:

    • I11 - Health, Education, and Welfare - - Health - - - Analysis of Health Care Markets
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health

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