Sport: A Philosophical Perspective

In this paper, the impact of increased consumer information on brand name and generic pharmaceutical prices is analyzed both theoretically and empirically. The theoretical results show that an increase in information is likely to reduce the price of brand name pharmaceuticals, while the results regarding generics are less clear. In the empirical part of the paper, the introduction of the substitution reform in the Swedish pharmaceuticals market in October 2002 is used as a natural experiment regarding the effects of increased consumer information on pharmaceutical prices. The results clearly show that the reform has lowered the price of both brand name- and generic pharmaceutical

Community Participation: A Critical View

This paper reports on a study of the prescribing physician's influence on consumers' choice between medically equivalent pharmaceuticals. The study was performed using a dataset of 666,000 observations in which consumers were asked whether they were prepared to pay the price difference in order to obtain the prescribed pharmaceutical instead of the cheapest available substitute. The main results support the hypothesis that prescribing physicians have an impact on consumers' choice between medically equivalent pharmaceutical products

Uncertainty in the Generic Versus Brand Name Prescription Decision

This paper analyzes the impact of uncertainty concerning product quality of generic drugs on the substitution behavior of prescribing physicians. It is shown that uncertainty about the generic drug quality gives the physician a value of waiting for more information before switching to the generic version. In addition, it is shown that reducing the approval requirements for generic drugs, thereby increasing uncertainty about quality, may discourage physicians from prescribing such drugs. A small empirical study supports the theoretical findings and indicate that uncertainty about the quality of generic drugs do affect physician prescription behavior.Pharmaceutical industry; uncertainty; real options

Does Shelf-Labeling of Organic Foods Increase Sales? Results from a Natural Experiment

Can a simple point-of-purchase (POP) shelf-label increase sales of organic foods? We use a random-effects, random-coefficients model, including a time adjustment variable, to test data from a natural experiment in a hypermarket in Gävle, Sweden. Our model incorporates both product specific heterogeneity in the effects of labeling and consumer adjustment to the labels over time. The introduction of POP displays was found to lead to an increase in sales of organic coffee and olive oil, but a reduction in sales of organic flour. All targeted products became less price-sensitive. The results reveal that product specific heterogeneity has to be accounted for, and in some cases consumers adjusted to labeling over time.Product labeling; random coefficient models; ecological products; experimental economics

Does Shelf-Labeling of Organic Foods Increase Sales? Results from a Natural Experiment

Can a simple point-of-purchase (POP) shelf-label increase sales of organic foods? We use a random-effects, random-coefficients model, including a time adjustment variable, to test data from a natural experiment in a hypermarket in Gävle, Sweden. Our model incorporates both product specific heterogeneity in the effects of labeling and consumer adjustment to the labels over time. The introduction of POP displays was found to lead to an increase in sales of organic coffee and olive oil, but a reduction in sales of organic flour. All targeted products became less price-sensitive. The results reveal that product specific heterogeneity has to be accounted for, and in some cases consumers adjusted to labeling over time.Product labeling; random coefficient models; ecological products; experimental economics

Fixed Budgets as a Cost Containment Measure for Pharmaceuticals

In the county of Västerbotten, Sweden, there are two health centres which (contrary to all other health centres in the region) have a strict responsibility over their pharmaceutical budget. The purpose of this paper is to examine if the prices and quantities of pharmaceuticals prescribed by physicians working at these health centres differ significantly from those prescribed by physicians at health centres with open-ended budgets. Estimation results using matching methods, which allows us to compare similar patients at the different health centres, show that the introduction of fixed pharmaceutical budgets did not affect physicians' prescription behaviour.pharmaceuticals; cost containment; propensity score matching

Entry into Swedish Retail- and Wholesale Trade Markets

In this paper, a Poisson regression model is used to study the determinants of entry of new firms into the Swedish retail- and wholesale trade markets. The results suggest that incumbent firms engage in strategic behavior to prevent the entry of newcomers. Regional factors are also found to be important determinants of entry.Wholesale trade; retail trade; entry; number of firms; panel data

Congestion Charges in Stockholm: How Have They Affected Retail Revenues?

Did the introduction of congestion charges in Stockholm city reduce retail revenues? Data from 20 shopping malls - 8 within the toll area, and 12 outside the tool area - and from a sample of retail stores located along the main shopping streets was analyzed using an intervention-control approach. Favorable outcomes, such as reduced traffic, less emissions of carbon-dioxide, and perceived improvements in air quality and accessibility, do not seem to have been offset by reduced revenues for retailers located within the toll area.Road toll; congestion fee; congestion charge; retail revenues; retail profts

Does Competition Increase Economic Efficiency in Swedish County Councils?

The Swedish health care system is to a large extent publicly managed by 21 local county councils. During recent years there has been a movement were local county councils have opted to allow more of the production to be performed by alternative producers (i.e. private firms, cooperatives etc.). The purpose of this paper is thus to study if local county councils who has a large proportion of health care performed by alternative producers are more economically efficient than other county councils. The results indicate that county councils with more alternative caregivers are supplying their services more efficiently.Economic efficiency in health care; Data Envelopment Analysis; Tobit regression

Do Regional Investment Grants Improve Firm Performance? Evidence from Sweden

The effect of Swedish regional investment grants during 1990-1999 on firm performance, in terms of returns on equity and number of employees, were studied using a propensity-score matching-method to control for sample selection. Firms that received grants did not perform better in terms of returns on equity when compared to matched firms in the control group. In most years, recipient firms also did not hire more employees. The results thus cast doubt on the use of regional investment grants as a general policy instrument to improve firm performance.Economic efficiency; propensity score matching; sample selection; logit regression; panel data