Skip to main content
Log in

Entry and the Number of Firms in the Swedish Pharmaceuticals Market

  • Published:
Review of Industrial Organization Aims and scope Submit manuscript

Abstract

This paper analyses the factors that determineentry into the Swedish pharmaceuticals market. The analysis is based onpanel data for 22 different substances covering the years 1972 to 1996. Theresults show that profit opportunities in a particular market have apositive impact on entry. In addition, there is some evidence suggestingthat the length of the patent protection period has a negative impact onentry.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Similar content being viewed by others

References

  • Al-Osh, M. A., and A. A. Alzaid (1987) ‘First-Order Integer Valued Autoregressive (INAR(1)) Process’. Journal of Time Series Analysis, 8, 261–275.

    Google Scholar 

  • Andersson, F., and P. Hertzman (1993) ‘Effective Patent Life of Drugs in Sweden — A Comparison with International Studies’, Managerial and Decision Economics, 14, 53–63.

    Google Scholar 

  • Bae, J. P. (1997) ‘Drug Patent Expirations and the Speed of Generic Entry’, Health Services Research, 32, 87–101.

    Google Scholar 

  • Berglund, E., and K. Brännäs (1996) ‘Entry and Exit of Plants: A Study Based on Swedish Panel Count Data’, Yearbook of the Finnish Statistical Society, 95–111.

  • Brännäs, K. (1995) Explanatory Variables in the AR(1) Poisson Model. Umeå Economic Studies, No. 381.

  • Brännäs, K., and J. Hellström (1998) Forecasting Based on Very Small Samples and Additional Non-Sample Information. Umeå Economic Studies, No. 472.

  • Brännäs, K., and J. Hellström (1999) Generalized Integer-Valued Autoregression. Umeå Economic Studies, No. 501.

  • Cameron, A. C., and P. Trivedi (1998) Regression Analysis of Count Data. Cambridge: Cambridge University Press.

    Google Scholar 

  • Caves, R. E., M. D. Whinston, and M. A. Hurwitz (1991) Patent Expiration, Entry, and Competition in the U.S. Pharmaceutical Industry. Brookings Papers on Economic Activity: Microeconomics. Washington, DC: Brookings Institution.

    Google Scholar 

  • Grabowski, H. G., and J. M. Vernon (1992) ‘Brand Loyalty, Entry and Price Competition in Pharmaceuticals after the 1984 Drug Act’, Journal of Law and Economics, 35, 331–350.

    Google Scholar 

  • Greene, W. H. (1993) Econometric Analysis. New Jersey: Prentice-Hall.

    Google Scholar 

  • Hudson, J. (1992) ‘Pricing Dynamics in the Pharmaceutical Industry’, Applied Economics, 24, 103–112.

    Google Scholar 

  • Masson, A., and R. L. Steiner (1985) Generic Substitution and Prescription Drug Prices. Washington, DC: Federal Trade Commission.

    Google Scholar 

  • McKenzie, E. (1985) ‘Some Simple Models for Discrete Variate Time Series’, Water Resources Bulletin, 21, 645–650.

    Google Scholar 

  • Scott-Morton, F. M. (1999) ‘Entry Decisions in the Generic Pharmaceutical Industry’, RAND Journal of Economics, 30, 421–440.

    Google Scholar 

  • Stigler, G. J. (1968) The Organization of Industry. Homewood: Richard D. Irwin, Inc.

    Google Scholar 

  • White, H. (1980) ‘A Heteroskedasticity-Consistent Covariance Matrix Estimator and a Direct Test for Heteroskedasticity’, Econometrica, 48, 817–838.

    Google Scholar 

  • Yu, S. S. (1984) ‘Some Determinants of Entry into Therapeutic Drug Markets’, Review of Industrial Organization, 1, 260–275.

    Google Scholar 

Download references

Author information

Authors and Affiliations

Authors

Rights and permissions

Reprints and permissions

About this article

Cite this article

Rudholm, N. Entry and the Number of Firms in the Swedish Pharmaceuticals Market. Review of Industrial Organization 19, 351–364 (2001). https://doi.org/10.1023/A:1011868404205

Download citation

  • Issue Date:

  • DOI: https://doi.org/10.1023/A:1011868404205

Navigation