nep-ind New Economics Papers
on Industrial Organization
Issue of 2013‒10‒11
three papers chosen by
Kwang Soo Cheong
Johns Hopkins University

  1. Merger and acquisition activity as driver of spatial clustering: the spatial evolution of the Dutch banking industry, 1850-1993 By Ron Boschma; Matté Hartog
  2. The Regulation of Prescription Drug Competition and Market Responses: Patterns in Prices and Sales Following Loss of Exclusivity By Murray L. Aitken; Ernst R. Berndt; Barry Bosworth; Iain M. Cockburn; Richard Frank; Michael Kleinrock; Bradley T. Shapiro
  3. Patent litigation in Europe By Cremers, Katrin; Ernicke, Max; Gaessler, Fabian; Harhoff, Dietmar; Helmers, Christian; McDonagh, Luke; Schliessler, Paula; Van Zeebroeck, Nicolas

  1. By: Ron Boschma; Matté Hartog
    Abstract: This paper investigates the extent to which merger and acquisition activity contributed to the spatial clustering of the Dutch banking industry in Amsterdam. This analysis is based on a unique database of all banks in the Netherlands that existed in the period 1850-1993. We found that spatial clustering of the Dutch banking industry was not driven by the fact that banks performed better in the Amsterdam region: being located in Amsterdam decreased rather than increased the survival chance of banks. However, banks in Amsterdam were disproportionally active in acquiring other banks outside Amsterdam. Experience in M&As accumulated mainly in the Amsterdam region, which in turn had a positive impact on the survival chance of banks located there. Our findings suggest that M&A activity was a driving force behind the spatial clustering of the Dutch banking industry between 1850 and 1993.
    Keywords: industrial dynamics, cluster, mergers and acquisitions, banking sector, evolutionary economic geography
    JEL: O18 R00 R11
    Date: 2013–09
    URL: http://d.repec.org/n?u=RePEc:egu:wpaper:1315&r=ind
  2. By: Murray L. Aitken; Ernst R. Berndt; Barry Bosworth; Iain M. Cockburn; Richard Frank; Michael Kleinrock; Bradley T. Shapiro
    Abstract: We examine six molecules facing initial loss of US exclusivity (LOE, from patent expiration or challenges) between June 2009 and May 2013 that were among the 50 most prescribed molecules in May 2013. We examine prices per day of therapy (from the perspective of average revenue received by retail pharmacy per day of therapy) and utilization separately for four payer types (cash, Medicare Part D, Medicaid, and other third party payer – TPP) and age under vs. 65 and older. We find that quantity substitutions away from the brand are much larger proportionately and more rapid than average price reductions during the first six months following initial LOE. Brands continue to raise prices after generics enter. Expansion of total molecule sales (brand plus generic) following LOE is an increasingly common phenomenon compared with earlier eras. The number of days of therapy in a prescription has generally increased over time. Generic penetration rates are typically highest and most rapid for TPPs, and lowest and slowest for Medicaid. Cash customers and seniors generally pay the highest prices for brands and generics, third party payers and those under 65 pay the lowest prices, with Medicaid and Medicare Part D in between. The presence of an authorized generic during the 180-day exclusivity period has a significant impact on prices and volumes of prescriptions, but this varies across molecules.
    JEL: D01 D02 D43 I1 L65 L78
    Date: 2013–10
    URL: http://d.repec.org/n?u=RePEc:nbr:nberwo:19487&r=ind
  3. By: Cremers, Katrin; Ernicke, Max; Gaessler, Fabian; Harhoff, Dietmar; Helmers, Christian; McDonagh, Luke; Schliessler, Paula; Van Zeebroeck, Nicolas
    Abstract: We compare patent litigation cases across four European jurisdictions - Germany, France, the Netherlands, and the UK - covering cases filed during the period 2000-2008. For our analysis, we assemble a new dataset that contains detailed information at the case, litigant, and patent level for patent cases filed at the major courts in the four jurisdictions. We find substantial differences across jurisdictions in terms of case loads. Courts in Germany hear by far the largest number of cases in absolute terms, but also when taking country size into account. We also find important between-country differences in terms of outcomes, the share of cases that is appealed, as well as the characteristics of litigants and litigated patents. A considerable number of patents are litigated in multiple jurisdictions, but the majority of patents are subject to litigation only in one of the four jurisdictions. --
    Keywords: Patent litigation,Europe
    JEL: O34 K11 K41
    Date: 2013
    URL: http://d.repec.org/n?u=RePEc:zbw:zewdip:13072&r=ind

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