Pricing above value: Selling to a market with selection problems

This paper shows that selection incentives in downstream markets distort upstream prices. It is possible for inputs to be priced above the value that the good has for final consumers. We apply this idea to pharmaceutical companies selling drugs to a health insurance market with selection problems. W...

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Veröffentlicht in:	Journal of health economics 2024-03, Vol.94, p.1-9, Article 102868
1. Verfasser:	Boone, Jan
Format:	Artikel
Sprache:	eng
Schlagworte:	Pharmaceutical prices Pricing above value Selection Vertical relations
Online-Zugang:	Volltext
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