2008-10-13 papers

on Industrial Organization

Issue of 2008–10–13
one paper chosen by
Kwang Soo Cheong, Johns Hopkins University

Drug pricing and risk sharing agreements By Stefano Capri; Rosella Levaggi

Drug pricing and risk sharing agreements

By:	Stefano Capri; Rosella Levaggi
Abstract:	In the recent past some forms of risk sharing agreements have been used in some countries in drug pricing. In this note we present a specific risk sharing agreement on effectiveness and show how such mechanism is going to affect the market in the long run. In particular, we will show how the regulator may create a trade off between expected afficacy and the number of patients to be treated using the pricing formula.
Date:	2008
URL:	https://d.repec.org/n?u=RePEc:ubs:wpaper:0810

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