In this note, we revise the theoretical condition in Regan (2008) under which the price of brand-name drugs increases with the number of generic competitors—a phenomenon known as the generic paradox. We show that this condition derives from the analysis of an interior solution while it actually excludes the existence of an interior solution. Therefore,...

In this paper, we disentangle aversion to AI from relative confidence towards this new technology by structurally estimating a model of disease testing decision. Adapting a model of neo-capacities and using data from a discrete choice experiment in the field of neuro-degenerative diseases, we measure both confidence and aversion towards AI-based testing compared to biological...

Telemedicine is often put forward as a solution to medical deserts. Recently, telemedicine has allowed to limit physical contacts during a pandemic. We analyze within a theoretical model the setting of physicians' fees in the presence of distant medicine and public health insurance, as well as the resulting patients' surplus, access and public expenses. Concretely,...

This paper analyzes the negotiation process, which leads to basic research funding and price setting for new drugs in regulated health insurance markets. Its results bring answers to the following questions: Should basic research be privately funded, publicly funded, or produced by an independent lab? Under which conditions is public integration of basic research efficient?...

We study optimal contracts in a regulator–agent setting with joint production, altruistic and selfish agents, limited liability, and uneasy outcome measurement. Such a setting represents sectors of activities such as education and healthcare provision. The agents and the regulator jointly produce an outcome for which they all care to some extent that is varying from...

We analyse how drug approval procedures influence the incentives of pharmaceutical firms to commercialise new drugs in the presence of international reference pricing. Since 1995, the European Medicines Agency (EMA) coordinates a centralised approval procedure for specific new drugs in the EU. With such a centralised procedure, the EMA grants simultaneous drug approvals for all...

Notably lacking in the health care innovation literature is sufficient recognition of the key role that doctors and hospitals play in choosing health care quantity, quality, and in some cases, prices. If providers can freely choose all three, then the profit maximum for a fixed patient type is one in which patient willingness-to-pay (WTP) is...