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Estudos Econômicos (São Paulo)

Print version ISSN 0101-4161On-line version ISSN 1980-5357

Estud. Econ. vol.33 no.4 São Paulo Oct./Dec. 2003

http://dx.doi.org/10.1590/S0101-41612003000400001 

Credence goods and market power: an econometric study on the Brazilian pharmaceutical industry

 

 

Eduardo P. S. FiuzaI; Marcos de B. LisboaII

IFrom Instituto de Pesquisa Econômica, Diretoria de Estudos Macroeconômicos (DIMAC/ IPEA) and Fundação Getúlio Vargas, Escola de Pós-Graduação em Economia (EPGE/FGV)
IIFrom EPGE/FGV

 

 


ABSTRACT

Bearing in mind the market failures pointed out by the economic literature and following the international empirical evidence, and based on original micro data of the Brazilian pharmaceutical industry in the late 1990s, this article attempts to relate empirically drug prices in Brazil to some explaining variables. We find that, similarly to previous U.S. estimations, leading branded drugs accommodated share growth of the followers, turning towards a more inelastic market segment and raising their prices. On followers, in turn, a fall of the concentration index in a market had ambiguous effects: if due to reduced leader power, followers raised their relative prices; if due to a tougher competition within the fringe, their relative prices tended to go down.

Key words: generic drugs, pharmaceutical industry, credence goods.

JEL Classification
L65, C23, D82, I18, L15, L43


RESUMO

No presente artigo procuramos, tendo em mente as imperfeições de mercado apontadas pela literatura e pela experiência internacional, e com base em dados originais da indústria farmacêutica, relacionar empiricamente o preço de medicamentos no Brasil com algumas variáveis explicativas. Encontramos que, consoante com estimações anteriores da experiência norte-americana, os medicamentos líderes no Brasil, antes da lei que instituiu o medicamento genérico, acomodavam o avanço de produtos similares (do mesmo princípio ativo, porém sem o teste de bioequivalência) e se recolhiam a segmentos inelásticos do mercado, elevando seus preços. Os similares, ao contrário, ao perderem mercado, reduziam seus preços em relação ao líder, de modo que uma redução no índice de concentração do mercado total de um princípio ativo tem efeitos ambíguos sobre seus preços, dependendo se a causa é uma queda da participação do líder ou um rearranjo dentre os seguidores.

Palavras-chave: medicamentos genéricos, indústria farmacêutica, bens credenciais.


 

 

Full text available only in PDF format.

Texto completo disponível apenas em PDF.

 

 

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(Recebido em junho de 2002. Aceito para publicação em julho de 2003.)

 

 

This research has been sponsored by the Brazilian Fund for the Defense of Diffuse Rights. We gratefully acknowledge Paulo Correa, Cláudia Vidal, Cristiane Schmidt, Kélvia Frota and Sidney Rodrigues, from the Brazilian Ministry of Finance, for valuable cooperation; César Dalston, from the Federal Revenue Secretariat, for his kind and prompt help on classifying drugs in our sample according to official tariff categories; Marcos de Barros, from Fundação Getúlio Vargas, for his excellent work on organizing the data bank; and to Ingreed Valdez, Ana Paula Razal and Adrian Herringer, from IPEA, for their assistance on data manipulation. We are also grateful to Afonso Arinos Neto, Eduardo Pontual Ribeiro, Naércio Menezes-Filho and participants of seminars at PUC-RJ, EPGE, SEAE/MF, and IPEA, and LAMES and LACEA meetings, and to two anonymous referees of this journal for valuable comments and suggestions The usual caveat applies.

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