Antitrust & Competition Policy Blog

Editor: D. Daniel Sokol
University of Florida
Levin College of Law

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Friday, August 5, 2011

Side Effects of Competition: the Role of Advertising and Promotion in Pharmaceutical Markets

Posted by D. Daniel Sokol

Guy David (Wharton) and Sara Markowitz (Emory) explain Side Effects of Competition: the Role of Advertising and Promotion in Pharmaceutical Markets.

ABSTRACT: The extent of pharmaceutical advertising and promotion can be characterized by a balancing act between profitable demand expansions and potentially unfavorable subsequent regulatory actions. However, this balance also depends on the nature of competition (e.g. monopoly versus oligopoly). In this paper we model the firm’s behavior under different competitive scenarios and test the model’s predictions using a novel combination of sales, promotion, advertising, and adverse event reports data. We focus on the market for erectile dysfunction drugs as the basis for estimation. This market is ideal for analysis as it is characterized by an abrupt shift in structure, all drugs are branded, the drugs are associated with adverse health events, and have extensive advertising and promotion. We find that advertising and promotion expenditures increase own market share but also increase the share of adverse drug reactions. Competi! tors’ spending decreases market share, while also having an influence on adverse drug reactions.

http://lawprofessors.typepad.com/antitrustprof_blog/2011/08/side-effects-of-competition-the-role-of-advertising-and-promotion-in-pharmaceutical-markets-.html

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Comments

It's often the competitors that determine how bad the side effects can be.

Posted by: Slot Machines | Aug 7, 2011 10:30:46 PM

Side effects of the modernization of competition law in the EU. Modernization as a challenge to the enforcement system of competition law in the EU and the EU.

Posted by: buy ins | Oct 1, 2011 2:20:08 AM

This study examined the relationship between the generic drug market and the number of reported side effects.

Posted by: Blackjack Online | Oct 12, 2011 11:11:58 PM

We find that advertising and promotion expenditures increase own market share but also increase the share of adverse drug

Posted by: Idol lash reviews | Feb 20, 2012 2:25:41 AM

The extent of pharmaceutical advertising and promotion can be characterized by a balancing act between profitable demand expansions and potentially unfavorable subsequent regulatory actions.

Posted by: HGH | Feb 24, 2012 5:34:37 AM

spending decreases market share, while also having an influence on adverse drug reactions.

Posted by: HGH | Feb 25, 2012 1:59:05 AM

his market is ideal for analysis as it is characterized by an abrupt shift in structure, all drugs are branded, the drugs are associated with adverse health events, and have extensive advertising and promotion. We find that advertising and promotion expenditures increase own market share but also increase the share of adverse drug reactions. Competi! tors’ spending decreases market share, while also having an influence on adverse drug reactions.

Posted by: Six Pack abs | Apr 2, 2012 4:01:09 AM

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