Author： Jelovac Izabela Bordoy Catalina
Publisher： Springer Publishing Company
ISSN： 1389-6563
Source： International Journal of Health Care Finance and Economics, Vol.5, Iss.1, 2005-03, pp. : 5-21
Disclaimer: Any content in publications that violate the sovereignty, the constitution or regulations of the PRC is not accepted or approved by CNPIEC.
Abstract
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.
Related content
Profit-Enhancing Parallel Imports
By Matsushima Noriaki Matsumura Toshihiro
Open Economies Review, Vol. 21, Iss. 3, 2010-07 ,pp. :
Access to resources
Recommend
Trade policy and parallel imports
European Journal of Political Economy, Vol. 19, Iss. 1, 2003-03 ,pp. :
Pricing and Welfare in Health Plan Choice
By Bundorf M. Kate Levin Jonathan Mahoney Neale
The American Economic Review, Vol. 102, Iss. 7, 2012-12 ,pp. :
Endogenous innovations in the pharmaceutical industry
Journal of Evolutionary Economics, Vol. 17, Iss. 4, 2007-08 ,pp. :
Strategic and welfare implications of bundling
By Martin S.
Economics Letters, Vol. 62, Iss. 3, 1999-03 ,pp. :