Pseudo-Generic Products and Barriers to Entry in Pharmaceutical Markets

B-Tier
Journal: Review of Industrial Organization
Year: 2004
Volume: 25
Issue: 1
Pages: 71-86

Authors (2)

Ying Kong (York University) James R. Seldon (not in RePEc)

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

This paper examines incentives for brand-name pharmaceutical producers to market pseudo-generic versions of their own branded products upon the expiry of patent protection.Using a two-stage game model, we determine that under plausible demand and cost conditions, brand-name incumbents can find it profitable to produce pseudo-generics as a means of blocking rivals' entry even when independent firms producing true generics face low entry costs.The model shows that social welfare can be higher when firms use pseudo-generics instead of capacity for entry deterrence as long as substitutability between brand-name and generic products is sufficiently high.

Technical Details

RePEc Handle
repec:kap:revind:v:25:y:2004:i:1:p:71-86
Journal Field
Industrial Organization
Author Count
2
Added to Database
2026-01-25