【AEW webinar】Does Entry Remedy Collusion? Evidence from the Generic Prescription Drug Cartel & Do Patients Benefit from Price Transparency in Healthcare? Evidence from Medical Implants in Taiwan
2022/05/12
研討會日期 : 2022-05-12
時間 : 08:30
主講人 : Professor Amanda Starc & Chung-Ying Lee
地點 :
演講者簡介 : Professor Starc received her Ph.D. in Business Economics from Harvard University in 2011. She is currently an Associate Professor of Strategy at the Kellogg School of Management and a Faculty Research Fellow at the National Bureau of Economic Research (NBER) Her research interests include industrial organization and health economics.
Professor Lee received his Ph.D. in Economics from Duke University in 2014. He is currently an Associate Professor at National Taiwan University. His research fields are Empirical Industrial Organization, Applied Econometrics, Health Economics, and Pricing Strategy.
演講摘要 : Entry represents a fundamental threat to cartels engaged in price fixing. We study the extent and effect of this behavior in the largest price fixing case in US history, which involves generic drugmakers. To do so, we link information on the cartel’s internal operations to regulatory filings and market data. We find that collusion induces significant entry, which in turn reduces prices. However, regulatory approvals delay most entrants by 2-4 years. We then estimate a structural model to assess counterfactual policies. We find that reducing regulatory delays by just 1-2 years equates to consumer compensating variation of $597 million-$1.52 billion.
