id	author	title	date	pages	extension	mime	words	sentences	flesch	summary	cache	txt
work_22ikipu56za2fmev3pm4yjmkqq	Paula González	Private versus social incentives for pharmaceutical innovation	2016	34	.pdf	application/pdf	15417	1914	79	When the new drug is much more cost-e¤ective than the pioneer, the innovative �rm sets a price that leads the physician to prescribe the new drug to all patients. drugs are very horizontally di¤erentiated, then the price set by the innovative �rm leads They study the incentives of an incumbent pharmaceutical �rm to launch an upgraded drug through innovation before it faces generic competition. Second, the physician prescribes the new drug to all patients if the price p1 is low that of the pioneer and �rm 1 decides to set a price for which the new drug is prescribed Proposition 3 For an incremental innovation process pursuing a me-too drug, the optimal investment decision for �rm 1; I1in; and for the social planner, I , and pmax, pall, and pint are all increasing in b, the price of the new drug will	./cache/work_22ikipu56za2fmev3pm4yjmkqq.pdf	./txt/work_22ikipu56za2fmev3pm4yjmkqq.txt