City Research Online

Abstract

Common ownership—where several firms are (partially) owned by the same investors—and its impact on product market competition has recently drawn much attention. This paper focuses on its implications for market entry. We consider the entry decisions of generic pharmaceutical firms into drug markets that are opened up by the end of regulatory protection and which were previously dominated by a single firm selling the brand name drug. We find robust evidence that an increase in common ownership leads to a significant reduction in generic entry.

Publication Type:	Article
Additional Information:	Copyright American Economic Association; reproduced with permission.
Publisher Keywords:	Market Entry, Ownership Structure, Pharmaceutical Industry
Subjects:	H Social Sciences > HB Economic Theory R Medicine > RS Pharmacy and materia medica
Departments:	School of Policy & Global Affairs School of Policy & Global Affairs > Department of Economics
SWORD Depositor:	Symplectic Administrator

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