Competition and Drug Pricing in the PBS: An Economic Interpretation

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Sheehan, Peter and Sweeny, Kim (2002) Competition and Drug Pricing in the PBS: An Economic Interpretation. Working Paper. Victoria University, Melbourne, Australia.


The paper will describe and attempt to assess some of the evidence in relation to six hypotheses. It is very preliminary. In its subsequent development it will attempt to pull together evidence from international sources and other Australian studies, from our case studies and from our analyses of various data sources, to assess these hypotheses. The six hypotheses are as follows. 1. Increasing Role of Benefit Paid Pharmaceuticals. 2. Highly Regulated Prices, with Administered Competition. 3. Extensive Non-Price Competition between Suppliers. 4. Low and Short-Lived Returns to Innovation. 5. Relatively High Price, Low Volume Approach to Generics. 6. Duopoly Situation for Many Post-Patent Drugs.

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Pharmaceutical Industry Project Equity, Sustainability and Industry Development Working Paper

Item type Monograph (Working Paper)
DOI No. 12
Subjects Historical > FOR Classification > 1402 Applied Economics
Historical > Faculty/School/Research Centre/Department > Centre for Strategic Economic Studies (CSES)
Keywords Pharmaceuticals Benefit Scheme, PBS, Australian health system
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