Change search
CiteExportLink to record
Permanent link

Direct link
Cite
Citation style
  • apa
  • ieee
  • modern-language-association-8th-edition
  • vancouver
  • Other style
More styles
Language
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
  • sv-SE
  • Other locale
More languages
Output format
  • html
  • text
  • asciidoc
  • rtf
Defining Relevant Product Markets for Pharmaceuticals
Dalarna University, School of Technology and Business Studies, Human Geography. HUI Research.
Dalarna University, School of Technology and Business Studies, Economics. HUI Research.
2013 (English)Report (Other academic)
Abstract [en]

To identify the relevant product markets for Swedish pharmaceuticals, a spatial econometrics approach is employed. First, we calculate Moran’s Is for different market definitions and then we use a spatial Durbin model to determine the effect of price changes on quantity sold off own and competing products. As expected, the results show that competition is strongest between close substitutes; however, the relevant product markets for Swedish pharmaceuticals extend beyond close substitutes down to products included in the same class on the four-digit level of the Anatomic Therapeutic Chemical system as defined by the World Health Organization. The spatial regression model further indicates that increases in the price of a product significantly lower the quantity sold of that product and in the same time increase the quantity sold of competing products. For close substitutes (products belonging to the same class on the seven-digit level of the Anatomic Therapeutic Chemical system), as well as for products that, without being close substitutes, belong to the same therapeutic/pharmacological/chemical subgroup (the same class on the five-digit level of the Anatomic Therapeutic Chemical system), a significant change towards increased competition is also visible after 1 July 2009 when the latest policy changes with regards to pharmaceuticals have been implemented in Sweden.

Place, publisher, year, edition, pages
S-WoPEc , 2013. , 33 p.
Series
S-WoPEc: Scandinavian Working Papers in Economics
Keyword [en]
market delineation; competition; horizontal merger guidelines; spatial Durbin model; market reform
National Category
Economics Business Administration
Research subject
Komplexa system - mikrodataanalys
Identifiers
URN: urn:nbn:se:du-16244OAI: oai:DiVA.org:du-16244DiVA: diva2:758381
Funder
Swedish Competition Authority
Available from: 2014-10-27 Created: 2014-10-27 Last updated: 2014-11-03Bibliographically approved

Open Access in DiVA

Defining_Relevant_Product_Markets_for_Pharmaceuticals(732 kB)82 downloads
File information
File name FULLTEXT01.pdfFile size 732 kBChecksum SHA-512
04f98d63ff0c5fd795419d823ba2709b959a0563a8605c1da76ae383f4c6da2ebb79943525d214a7a94513712ef5400122e0138b1e1470733093092de3835b12
Type fulltextMimetype application/pdf

Other links

http://swopec.hhs.se/huiwps/abs/huiwps0096.htmhttp://www.hui.se/forskning/hui-working-papers

Search in DiVA

By author/editor
Mihaescu, OanaRudholm, Niklas
By organisation
Human GeographyEconomics
EconomicsBusiness Administration

Search outside of DiVA

GoogleGoogle Scholar
Total: 82 downloads
The number of downloads is the sum of all downloads of full texts. It may include eg previous versions that are now no longer available

urn-nbn

Altmetric score

urn-nbn
Total: 673 hits
CiteExportLink to record
Permanent link

Direct link
Cite
Citation style
  • apa
  • ieee
  • modern-language-association-8th-edition
  • vancouver
  • Other style
More styles
Language
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
  • sv-SE
  • Other locale
More languages
Output format
  • html
  • text
  • asciidoc
  • rtf