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Innovation and pricing in the Dutch drug industry
Author(s) -
Reekie W. Duncan
Publication year - 1981
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.4090020109
Subject(s) - rivalry , market share , herfindahl index , economics , market size , price elasticity of demand , market concentration , industrial organization , business , microeconomics , market structure , commerce , marketing
The Dutch pharmaceutical industry is characterized by a high degree of innovative rivalry resulting in frequent rises and falls in market shares by both firms and products. Conventional concentration ratios, Herfindahl indices and market share stability measures are not highly correlated. The market, however, does display price sensitivity. Elasticity of demand for new products is inversely related to their incremental quality and directly related to their age.