Marjit, Sugata and Kabiraj, Tarun and Dutta, Arijita (2009): Strategic Under-utilization of Patents and Entry Deterrence: The Case of Pharmaceutical Industry.
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This paper seeks to explain why some pharmaceutical companies are observed to withdraw their products before patents are expired and simultaneously introduce new patented (competing) products. Given the specific nature of drug markets, the companies in fact increase the entry cost of the potential generic drug manufacturers and thereby lessen competition for new drugs. The paper determines the optimal date of withdrawing the product and studies comparative static effects of the change of parameters underlying the model.
|Item Type:||MPRA Paper|
|Original Title:||Strategic Under-utilization of Patents and Entry Deterrence: The Case of Pharmaceutical Industry|
|English Title:||Strategic Under-utilization of Patents and Entry Deterrence: The Case of Pharmaceutical Industry|
|Keywords:||Patent protection; patent expiry; pharmaceutical industries; generic drugs; entry cost.|
|Subjects:||O - Economic Development, Technological Change, and Growth > O3 - Technological Change; Research and Development; Intellectual Property Rights
L - Industrial Organization > L1 - Market Structure, Firm Strategy, and Market Performance
|Depositing User:||sugata marjit|
|Date Deposited:||11. Dec 2009 09:26|
|Last Modified:||22. Feb 2013 07:29|
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