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- W1572303654 abstract "We provide a method allowing identi…cation of margins in an oligopoly price competition game when prices may not be freely chosen in some markets, for example due to regulation. We use our identi…cation strategy to study the eects of regulatory constraints in the pharmaceutical industry. We provide the …rst structural estimation of price-cost margins on a regulated market with price constraints and show how to identify unknown possibly binding constraints thanks to three dierent markets (US, Germany and France) with varying regulatory constraints. We use the market for anti-ulcer drugs to identify whether regulation in France truly aects margins and prices and relate regulatory reforms to industry pricing equilibrium. Empirical results show that …rms were especially constrained in price setting after the dierent reforms in 2004. Counterfactual simulations show that total spending signi…cantly increased because of the new price regulation by displacing part of the demand from generics to branded drugs." @default.
- W1572303654 created "2016-06-24" @default.
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- W1572303654 date "2014-02-01" @default.
- W1572303654 modified "2023-09-27" @default.
- W1572303654 title "Identifying Industry Margins with Unobserved Price Constraints: Structural Estimation on Pharmaceuticals" @default.
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