Direct to consumer advertising in pharmaceutical markets
Abstract
We study effects of direct-to-consumer advertising (DTCA) in the prescription drug market. There are two pharmaceutical firms providing horizontally differentiated (branded) drugs. Patients differ in their susceptibility to the drugs. If DTCA is allowed, this can be employed to induce (additional) patient visits. Physicians perfectly observe the patients’ type (of illness), but rely on information to prescribe the correct drug. Drug information...
Paper Details
Title
Direct to consumer advertising in pharmaceutical markets
Published Date
Jan 1, 2006
Journal
Volume
25
Issue
1
Pages
102 - 130
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