Economics, Econometrics and Finance
4 years ago

Patients Pay Less for Drugs as Buyers Gain Bargaining Power

SSRN Electronic Journal
The Effect of Bargaining Power Determinants on Pharmaceutical Prices
Sebastian Linde, Brandon Norton, Ralph Siebert

Paper Summary

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The study looked at what affects drug prices and found that buyers have more power in negotiations, leading to lower prices. Factors like how much a buyer buys and how loyal they are can make a big difference in getting lower prices. Increasing transaction volume, buyer loyalty, and buying multiple drugs from the same seller can help buyers get better deals and save money on drugs.