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‘Branded Generics’ as a strategy to limit cannibalization of pharmaceutical markets
Author(s) -
Reiffen David,
Ward Michael R.
Publication year - 2007
Publication title -
managerial and decision economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.288
H-Index - 51
eISSN - 1099-1468
pISSN - 0143-6570
DOI - 10.1002/mde.1339
Subject(s) - cannibalization , limit (mathematics) , product (mathematics) , economics , microeconomics , business , industrial organization , advertising , marketing , mathematical economics , mathematics , mathematical analysis , geometry
This paper demonstrates how, by introducing a generic version of its previously patented product, a branded firm can influence the equilibrium in the generic segment of the market for the product. This in turn can increase the firm's profits from selling the branded version. We then use structural estimates from previous literature to calculate the magnitude of the effects in the generic and branded segments. Copyright © 2007 John Wiley & Sons, Ltd.