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Unpublished Paper
On international cost-sharing of pharmaceutical R&D
International Journal of Health Care Finance and Economics (2008)
  • Pedro P Barros, Universidade Nova de Lisboa
  • Xavier Martinez-Giralt, Universitat Autonoma de Barcelona

Ramsey pricing has been proposed in the pharmaceutical industry as a principle to price discriminate among markets while allowing to recover the (fixed) R&D cost. However, such analyses neglect the presence of insurance or the fund raising costs for drug reimbursement. By incorporating these new elements, we aim at providing some building blocks towards an economic theory merging Ramsey pricing, equity concerns by governments and the strategic incentives, as governments also determine the reimbursement level in countries with a NHS-like system. This will have important implications to the application of Ramsey pricing principles to pharmaceutical products across countries.

  • Ramsey pricing,
  • coinsurance
Publication Date
Citation Information
Pedro P Barros and Xavier Martinez-Giralt. "On international cost-sharing of pharmaceutical R&D" International Journal of Health Care Finance and Economics Vol. 8 Iss. 4 (2008)
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