Drug pricing has been the subject of Congressional inquiries, government investigations, and media attention. Generic drugs have long played an important role in reducing drug prices. Has the recent wave of generic drug company consolidation adversely affected pricing? Are overlap divestitures sufficient? Are prices being fixed, as might be suggested by DOJ’s criminal investigation and related civil litigation? Steven Tenn is a panelist on this topic.
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How capacity constraints shape unilateral price effects in horizontal mergers
Examples include hospitals with a fixed number of beds, and hotels with a fixed number of rooms. In the article “Unilateral Price Effects in Horizontal...