Economists at the Federal Trade Commission pursue the agency’s competition and consumer protection missions. In this year’s essay, in antitrust, we discuss two recent mergers that involved Rx drugs: First, we describe key elements of the inquiry into the Express Scripts/Medco transaction in the pharmacy benefit management industry. Next, we analyze a merger that involved drugs that are used to treat patent ductus arteriosus: a condition that affects premature babies. On the consumer protection side, we discuss a pricing strategy—drip pricing—that involves the release of price information about a multi-part product over time as the consumer goes through the purchase process.
Review of Industrial Organization – Springer Journals
Published: Dec 1, 2012
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