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: firstname.lastname@example.org; 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
Review of Industrial Organization – Springer Journals
Published: Jan 12, 2006
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