The New Palgrave Dictionary of Economics

2018 Edition
| Editors: Macmillan Publishers Ltd

Pharmaceutical Industry

  • Sara Fisher Ellison
Reference work entry
DOI: https://doi.org/10.1057/978-1-349-95189-5_2404

Abstract

The pharmaceutical industry comprises firms which manufacture medicines, including vaccines. Many of these firms also perform some or all of the following functions: conducting basic scientific research to identify (patentable) chemical compounds with medicinal properties, developing those chemical compounds into safe, effective, and commercially viable medicines, gaining government approval to sell those medicines, and marketing those medicines to potential consumers and prescribers. This industry has been widely studied by those interested in the analysis of health care systems. However, I focus here on industrial organization research which seeks to explain general economic phenomena by using the pharmaceutical industry as a setting.

Keywords

Agency problems Asymmetric information Entry Industrial organization Innovation Patents Pharmaceutical industry Rregulation Research 
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Copyright information

© Macmillan Publishers Ltd. 2018

Authors and Affiliations

  • Sara Fisher Ellison
    • 1
  1. 1.