Author

Amy McMahon

Date of Award

Spring 2013

Document Type

Thesis

Degree Name

Bachelor of Business Admin.

Department

Economics Business

Abstract

This paper studies price discrimination in forty emerging markets for forty-nine generic drugs for the therapeutic areas of cardiovascular diseases and infectious diseases. This paper studies how the age of a drug and how income distribution in a country affect the price discrimination of that drug in the country. Price data comes from the World Health Organization and Health Action International database. This paper shows that: (1) the longer the drug has been on the market, the less price discrimination that is present; and (2) the greater the income inequality in a country, the more price discrimination that is present. The paper demonstrates that the public sector sees lower prices overall and sees less price discrimination than the private sector. The results are relevant for public health agencies bargaining for low generic drug prices and for countries denying patent approval to pharmaceutical companies.

Included in

Business Commons

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