TY - JOUR
T1 - Pricing and welfare implications of parallel imports in the pharmaceutical industry
AU - Jelovac, I.
AU - Bordoy Marcó, C.P.
PY - 2005/1/1
Y1 - 2005/1/1
N2 - In this paper we investigate the implications of permitting parallel imports of pharmaceuticals produced by a monopoly, from one country to another. We use a model where countries differ in the patients’ level of co-payment for buying pharmaceuticals, and patients differ in the utility obtained from the consumption of pharmaceuticals. We show that the effects of parallel imports on total welfare are as follows: on the one hand, when countries differ in their health system only, parallel imports decrease total welfare; on the other hand, when countries differ in the health needs of their patients only, parallel imports enhance total welfare.
AB - In this paper we investigate the implications of permitting parallel imports of pharmaceuticals produced by a monopoly, from one country to another. We use a model where countries differ in the patients’ level of co-payment for buying pharmaceuticals, and patients differ in the utility obtained from the consumption of pharmaceuticals. We show that the effects of parallel imports on total welfare are as follows: on the one hand, when countries differ in their health system only, parallel imports decrease total welfare; on the other hand, when countries differ in the health needs of their patients only, parallel imports enhance total welfare.
U2 - 10.1007/s10754-005-6599-x
DO - 10.1007/s10754-005-6599-x
M3 - Article
SN - 1389-6563
VL - 5
SP - 5
EP - 21
JO - International Journal of Health Care Finance & Economics
JF - International Journal of Health Care Finance & Economics
ER -