Regulation and Pricing of Pharmaceuticals: Reference Pricing or Price Cap Regulation?

We study the relationship between regulatory regimes and pharmaceutical firms’ pricing strategies using a unique policy experiment from Norway, which in 2003 introduced a reference price (RP) system called “index pricing” for a sub-sample of off-patent pharmaceuticals, replacing the existing price cap (PC) regulation. We estimate the effect of the reform using a product level panel dataset, covering the drugs exposed to RP and a large number of drugs still under PC regulation in the time before and after the policy change. Our results show that RP significantly reduced both brand-name and generic prices within the reference group, with the effect being stronger for brand-names. We also identify a negative cross-price effect on therapeutic substitutes not included in the RP-system. In terms of policy implications, the results suggest that RP is more effective than PC regulation in lowering drug prices, while the cross-price effect raises a concern about patent protection.Pharmaceuticals; Price Regulation; Branded-Generic competition.

Regulation, generic competition and pharmaceutical prices: Theory and evidence from a natural experiment

We study the impact of regulatory regimes on generic competition and pharmaceutical pricing using a unique policy experiment in Norway, where reference pricing (RP) replaced price cap regulation in 2003 for a sub-sample of off-patent products. We exploit a detailed panel dataset at product level covering a wide set of off-patent drugs before and after the policy reform. Off-patent drugs not subject to reference pricing serve as our control group. We find that RP leads to lower relative prices, with the effect being driven by strong brand-name price reductions, and not increases in generic prices. We also find that RP increases generic competition, resulting in lower brand-name market shares. Finally, we show that RP has a strong negative effect on average prices at molecule level, suggesting significant cost-savings.Pharmaceuticals, Regulation, Generic Competition.

Regulation and Pricing of Pharmaceuticals: Reference Pricing or Price Cap Regulation?

We study the relationship between regulatory regimes and pharmaceutical firms’ pricing strategies using a unique policy experiment from Norway, which in 2003 introduced a reference price (RP) system called “index pricing” for a sub-sample of off-patent pharmaceuticals, replacing the existing price cap (PC) regulation. We estimate the effect of the reform using a product level panel dataset, covering the drugs exposed to RP and a large number of drugs still under PC regulation in the time before and after the policy change. Our results show that RP significantly reduces both brand-name and generic prices within the reference group, with the effect being stronger for brand-names. We also identify a negative cross-price effect on therapeutic substitutes not included in the RP-system. In terms of policy implications, the results suggest that RP is more effective than PC regulation in lowering drug prices, while the cross-price effect raises a concern about patent protection.pharmaceuticals, price regulation, branded-generic competition

Entrepreneurship: Origins and Returns

We examine the origins and outcome of entrepreneurship on the basis of exceptionally comprehensive Norwegian matched worker-firm-owner data. In contrast to most existing studies, our notion of entrepreneurship not only comprises self-employment, but also employment in partly self-owned limited liability firms. Based on this extended entrepreneurship concept, we find that entrepreneurship tends to be profitable. It also raises income uncertainty, but the most successful quartile gains much more than the least successful quartile loses. Key determinants of the decision to become an entrepreneur are occupational qualifications, family resources, gender, and work environments. Individual unemployment encourages, while aggregate unemployment discourages entrepreneurship.entrepreneurship, self-employment, spin-offs

Scalar Deformations of Schwarzschild Holes and Their Stability

We construct two solutions of the minimally coupled Einstein-scalar field equations, representing regular deformations of Schwarzschild black holes by a self-interacting, static, scalar field. One solution features an exponentially decaying scalar field and a triple-well interaction potential; the other one is completely analytic and sprouts Coulomb-like scalar hair. Both evade the no-hair theorem by having partially negative potential, in conflict with the dominant energy condition. The linear perturbation theory around such backgrounds is developed in general, and yields stability criteria in terms of effective potentials for an analog Schr\"odinger problem. We can test for more than half of the perturbation modes, and our solutions prove to be stable against those.Comment: 24 pp, 16 figs, Latex; version published in Int. J. Mod. Phys.

Droplet and cluster formation in freely falling granular streams

Particle beams are important tools for probing atomic and molecular interactions. Here we demonstrate that particle beams also offer a unique opportunity to investigate interactions in macroscopic systems, such as granular media. Motivated by recent experiments on streams of grains that exhibit liquid-like breakup into droplets, we use molecular dynamics simulations to investigate the evolution of a dense stream of macroscopic spheres accelerating out of an opening at the bottom of a reservoir. We show how nanoscale details associated with energy dissipation during collisions modify the stream's macroscopic behavior. We find that inelastic collisions collimate the stream, while the presence of short-range attractive interactions drives structure formation. Parameterizing the collision dynamics by the coefficient of restitution (i.e., the ratio of relative velocities before and after impact) and the strength of the cohesive interaction, we map out a spectrum of behaviors that ranges from gas-like jets in which all grains drift apart to liquid-like streams that break into large droplets containing hundreds of grains. We also find a new, intermediate regime in which small aggregates form by capture from the gas phase, similar to what can be observed in molecular beams. Our results show that nearly all aspects of stream behavior are closely related to the velocity gradient associated with vertical free fall. Led by this observation, we propose a simple energy balance model to explain the droplet formation process. The qualitative as well as many quantitative features of the simulations and the model compare well with available experimental data and provide a first quantitative measure of the role of attractions in freely cooling granular streams

A Practical Approach to Protect IoT Devices against Attacks and Compile Security Incident Datasets

open access articleThe Internet of Things (IoT) introduced the opportunity of remotely manipulating home appliances (such as heating systems, ovens, blinds, etc.) using computers and mobile devices. This idea fascinated people and originated a boom of IoT devices together with an increasing demand that was difficult to support. Many manufacturers quickly created hundreds of devices implementing functionalities but neglected some critical issues pertaining to device security. This oversight gave rise to the current situation where thousands of devices remain unpatched having many security issues that manufacturers cannot address after the devices have been produced and deployed. This article presents our novel research protecting IOT devices using Berkeley Packet Filters (BPFs) and evaluates our findings with the aid of our Filter.tlk tool, which is able to facilitate the development of BPF expressions that can be executed by GNU/Linux systems with a low impact on network packet throughput

Object-guided Spatial Attention in Touch: Holding the Same Object with Both Hands Delays Attentional Selection

Abstract Previous research has shown that attention to a specific location on a uniform visual object spreads throughout the entire object. Here we demonstrate that, similar to the visual system, spatial attention in touch can be object guided. We measured event-related brain potentials to tactile stimuli arising from objects held by observers' hands, when the hands were placed either near each other or far apart, holding two separate objects, or when they were far apart but holding a common object. Observers covertly oriented their attention to the left, to the right, or to both hands, following bilaterally presented tactile cues indicating likely tactile target location(s). Attentional modulations for tactile stimuli at attended compared to unattended locations were present in the time range of early somatosensory components only when the hands were far apart, but not when they were near. This was found to reflect enhanced somatosensory processing at attended locations rather than suppressed processing at unattended locations. Crucially, holding a common object with both hands delayed attentional selection, similar to when the hands were near. This shows that the proprioceptive distance effect on tactile attentional selection arises when distant event locations can be treated as separate and unconnected sources of tactile stimulation, but not when they form part of the same object. These findings suggest that, similar to visual attention, both space- and object-based attentional mechanisms can operate when we select between tactile events on our body surface.</jats:p