Azoulay P. "Do pharmaceutical sales respond to scientific evidence?" JOURNAL OF ECONOMICS & MANAGEMENT STRATEGY 11 (4): 551-594 WIN 2002

[Eugene Garfield]

Full text available at :http://www.columbia.edu/~pa2009/science.pdf

Title    Do pharmaceutical sales respond to scientific evidence?
Author   Azoulay P
Journal  JOURNAL OF ECONOMICS & MANAGEMENT STRATEGY 11 (4): 551-594 WIN 2002

 Document type: Article    Language: English
 Cited References: 45      Times Cited: 0


Abstract:
I investigate how, different sources of information influence the diffusion
of pharmaceutical innovations. In prescription-drug markets, both
advertising and scientific information stemming from clinical trials can
affect physicians' prescription choices. Using novel indices of
clinical-research output, I find that both marketing and scientific evidence
directly influence the diffusion process in the antiulcer-drug market, with
marketing having a more pronounced influence. I also find evidence that
clinical outputs are important drivers of firms' marketing efforts,
affecting sales indirectly. Taken together, the direct and indirect effects
of science on demand imply strong private incentives for clinical research.
I conclude that product-market competition in the pharmaceutical industry is
shaped by both advertising rivalries and scientific rivalries. Moreover,
drug advertising may perform an important informative function.

KeyWords Plus:
PRODUCT DIFFERENTIATION, PRICE-COMPETITION, DRUG, QUALITY, INFORMATION,
INDUSTRY, MARKET

Addresses:
Azoulay P, Columbia Univ, New York, NY 10027 USA
Columbia Univ, New York, NY 10027 USA

Publisher:
M I T PRESS, CAMBRIDGE

IDS Number:
611TH

ISSN:
1058-6407


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