Template-type: ReDif-Paper 1.0
Author-Name: Bordoy, Catalina
Author-Name: Jelovac, Izabela
Author-workplace-name: MERIT
Title: Pricing and Welfare of Parallel Imports in the Pharmaceutical Industry
Abstract: In this paper we investigate the implications of permitting parallel imports ofpharmaceuticals produced by a monopoly, from one country to another. We use a modelwhere countries differ in the patients’ level of co-payment for buying pharmaceuticals, andpatients differ in the utility obtained from the consumption of pharmaceuticals. We show thatthe effects of parallel imports on total welfare are as follows: On the one hand, whencountries differ in their health system only, parallel imports decrease total welfare; On theother hand, when countries differ in the health needs of their patients only, parallel importsenhance total welfare.
Keywords: international economics and trade ; 
Series: Research Memoranda
Creation-Date: 2003
Number: 004
File-URL: https://unu-merit.nl/publications/rmpdf/2003/rm2003-004.pdf
File-Format: application/pdf
File-Size: 210021
Handle: RePEc:unm:umamer:2003004