Demand estimation and merger simulations for drugs: Logits v. AIDS

B-Tier
Journal: International Journal of Industrial Organization
Year: 2018
Volume: 61
Issue: C
Pages: 653-685

Authors (2)

Score contribution per author:

1.005 = (α=2.01 / 2 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

We use ADHD drugs sales data from 2000–2003 and compare estimates of elasticities and merger simulations from three different demand models. Models include logit, random coefficients logit, and conditional AIDS demand model with multistage budgeting. The magnitude of cross-price elasticities is larger in the third model in comparison to the first two, and some of the cross-price elasticities are estimated to be negative. Hypothetical merger simulations show larger price effects for the multistage AIDS model in comparison to the discrete choice models.

Technical Details

RePEc Handle
repec:eee:indorg:v:61:y:2018:i:c:p:653-685
Journal Field
Industrial Organization
Author Count
2
Added to Database
2026-01-24