Pseudo-Generic Products and Barriers to Entry in Pharmaceutical Markets: Reply

Pseudo-Generic Products and Barriers to Entry in Pharmaceutical Markets: Reply Review of Industrial Organization (2006) 28:189–193 © Springer 2006 DOI 10.1007/s11151-006-0003-y Pseudo-Generic Products and Barriers to Entry in Pharmaceutical Markets: Reply 1, 2 YING KONG and JAMES R. SELDON School of Analytic Studies and Information Technology, York University, Toronto, Ontario, Canada M3J 1P3. Author for correspondence: E-mail: ykong@yorku.ca; Department of Economics, Thompson Rivers University, Kamloops, BC, Canada V2C5N3 We thank Vasco Rodrigues for his comments on “Pseudo-Generic Prod- ucts and Barriers to Entry in Pharmaceutical Markets” (Kong and Seldon, 2004, hereafter Barriers). That paper was aimed at discovering whether “under plausible demand and cost conditions, brand-name incumbents [could] find it profitable to produce pseudo-generics as a means of blocking rivals’ entry ... .” Our answer was in the affirmative; that possibility does exist. Rodrigues (2005) shifts the discussion somewhat by adducing specific parameter values over which our outcomes would not hold and challenges us to sharpen the wording of our propositions. He thus has helped make clear an ever-present danger in using specific examples to elaborate general conclusions. Much remains to be done before the model can be used to derive necessary principles, let alone to assist in judging whether real-world firms deliberately supply pseudo-generics for entry deterrence. We http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Review of Industrial Organization Springer Journals

Pseudo-Generic Products and Barriers to Entry in Pharmaceutical Markets: Reply

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Publisher
Kluwer Academic Publishers
Copyright
Copyright © 2006 by Springer
Subject
Economics; Industrial Organization; Microeconomics
ISSN
0889-938X
eISSN
1573-7160
D.O.I.
10.1007/s11151-006-0003-y
Publisher site
See Article on Publisher Site

Abstract

Review of Industrial Organization (2006) 28:189–193 © Springer 2006 DOI 10.1007/s11151-006-0003-y Pseudo-Generic Products and Barriers to Entry in Pharmaceutical Markets: Reply 1, 2 YING KONG and JAMES R. SELDON School of Analytic Studies and Information Technology, York University, Toronto, Ontario, Canada M3J 1P3. Author for correspondence: E-mail: ykong@yorku.ca; Department of Economics, Thompson Rivers University, Kamloops, BC, Canada V2C5N3 We thank Vasco Rodrigues for his comments on “Pseudo-Generic Prod- ucts and Barriers to Entry in Pharmaceutical Markets” (Kong and Seldon, 2004, hereafter Barriers). That paper was aimed at discovering whether “under plausible demand and cost conditions, brand-name incumbents [could] find it profitable to produce pseudo-generics as a means of blocking rivals’ entry ... .” Our answer was in the affirmative; that possibility does exist. Rodrigues (2005) shifts the discussion somewhat by adducing specific parameter values over which our outcomes would not hold and challenges us to sharpen the wording of our propositions. He thus has helped make clear an ever-present danger in using specific examples to elaborate general conclusions. Much remains to be done before the model can be used to derive necessary principles, let alone to assist in judging whether real-world firms deliberately supply pseudo-generics for entry deterrence. We

Journal

Review of Industrial OrganizationSpringer Journals

Published: Jan 12, 2006

References

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