?url_ver=Z39.88-2004&rft_val_fmt=info%3Aofi%2Ffmt%3Akev%3Amtx%3Adc&rft.relation=https%3A%2F%2Fpublications.ut-capitole.fr%2Fid%2Feprint%2F25818%2F&rft.title=On+the+effect+of+parallel+trade+on+manufacturers%E2%80%99+and+retailers%E2%80%99+profits+in+the+pharmaceutical+sector&rft.creator=Dubois%2C+Pierre&rft.creator=Saethre%2C+Morten&rft.subject=B-+ECONOMIE+ET+FINANCE&rft.description=Differences+in+regulated+pharmaceutical+prices+within+the+European+Economic+Area+create+arbitrage+opportunities+that+pharmacy+retailers+can+access+through+parallel+imports.+For+prescription+drugs+under+patent%2C+parallel+trade+affects+the+sharing+of+profits+among+an+innovating+pharmaceutical+company%2C+retailers%2C+and+parallel+traders.+We+develop+a+structural+model+of+demand+and+supply+in+which+retailers+can+choose+the+set+of+goods+to+sell%2C+thus+foreclosing+consumers%E2%80%99+access+to+less+profitable+drugs.+This+allows+retailers+to+bargain+and+obtain+lower+wholesale+prices+from+the+manufacturer+and+parallel+trader.+With+detailed+transaction+data+from+Norway%2C+we+identify+a+demand+model+with+unobserved+choice+sets+using+retailside+conditions+for+optimal+assortment+decisions+of+pharmacies.+We+find+that+retailer+incentives+play+a+significant+role+in+fostering+parallel+trade+penetration+and+that+banning+parallel+imports+would+benefit+manufacturers+as+well+as+prevent+pharmacies+from+foreclosing+the+manufacturer%E2%80%99s+product.+Finally%2C+in+the+case+of+the+statin+market+in+Norway%2C+we+show+that+it+would+be+possible+to+decrease+spending+and+increase+profits+of+the+original+manufacturer+through+lump+sum+transfers+associated+with+a+lower+reimbursement+price%2C+thus+decreasing+price+differentiation+across+countries&rft.publisher=TSE+Working+Paper&rft.date=2018-01&rft.type=Monograph&rft.type=NonPeerReviewed&rft.format=text&rft.language=en&rft.identifier=https%3A%2F%2Fpublications.ut-capitole.fr%2Fid%2Feprint%2F25818%2F1%2Fwp_tse_883.pdf&rft.identifier=++Dubois%2C+Pierre+%3Chttps%3A%2F%2Fwww.idref.fr%2F172637546%3E+and+Saethre%2C+Morten++(2018)+On+the+effect+of+parallel+trade+on+manufacturers%E2%80%99+and+retailers%E2%80%99+profits+in+the+pharmaceutical+sector.++TSE+Working+Paper%2C+n.+18-883%2C+Toulouse+++++&rft.relation=http%3A%2F%2Ftse-fr.eu%2Fpub%2F32393&rft.language=en