DIRECT TO CONSUMER ADVERTISING AND PRESCRIPTION CHOICE

This paper examines the effect of direct‐to‐consumer advertising (DTCA) of prescription drugs on doctors' choice of drug brands. Using antihistamines as an example, we show that DTCA has little effect on the choice of brand despite the massive DTCA expenditure incurred in this class. In contrast, promotional activities directed toward physicians have larger and longer lasting effects. These results, together with the market‐expanding results...