Market structure

Welfare loss means any social value that could be gained in theory but is lost due to the market structure. 

The market share of the most frequently prescribed active ingredient is very small both in England and in Spain, and the prescription concentration at the level of therapeutic substances is also very low. These data paint a picture of fierce competition in markets of drugs containing different active ingredients. However, we need to study the market structure and therapeutic competition at a lower level of therapeutic aggregation in order to be able to evaluate the extent to which pharmaceuticals enjoy dominant positions in their respective groups of therapeutic substitutes. 

In the following section of this chapter we analyse the various types of market structure that occur in the case of pharmaceuticals, and we review the different factors that can limit the functioning of price competition in this market on both the supply side and the demand side. Finally, we analyse possible forms of intervention, in particular mechanisms to encourage price competition in pharmaceutical markets, and discuss the extent to which they might improve efficiency and social welfare. 

Craig AM, Malek M. Market structure and conduct in the pharmaceutical industry. Pharmacol Ther 1995 66[2] 301— 337. 

Consumers can also take a more aggressive response, which might be to demand restitution or to try and change the market structure by campaigning for new laws, guidelines, or regulatory systems. Both of these responses can critically wound an industry. In Australia, tainted metwurst caused several known deaths and resulted in an economic boycott of the entire metwurst industry. Now, many years after the fact, the industry is still decimated. 

Pennings, J.M.E. and Wansink, B. 2005. Channel contract behavior The role of risk attitudes, risk perceptions, and channel member market structures. J. Busi. 78, 167-181. 

The chemical industry is presented in an overview with chemical value chain structures, industry specifics, market structures and trends before focusing on commodities. 

Chemical market overview provide understanding for market structure and development by products, applications, regions and market players... 

Scherer, F.M., Industrial market structure and economic performance, Rand McNally, Chicago, 1980. 

Framework conditions, impulses and influential factors affect the value networks externally (state, public). These include both legal and market structures and impnlses. 

For empirical evidence on consumers search costs for acute vs. chronic medications, and impacts on retail pricing of drugs, see Sorenson (2000). Bagwell (2001) provides a useful collection of economics articles dealing with the theoretical foundations and empirical analyses of advertising as information vs. persuasion, and the relationships among advertising, product quality, and market structure. 

Scherer, F. M., and D. R. Ross. 1990. Industrial Market Structure and Economic Performance. 3rd ed. Boston Houghton-Mifflin. 

Levin, R. C., "Technical Change, Economies of Scale, and Market Structure" Yale University, New Haven, 1974 (Ph.D. dissertation). 

Educating and training at all levels to build capacity, infrastructure and networks. Inadequacies in regulatory and marketing structures (e.g. labelling). 

So we will probably see a growing UGS market structured as follows ... 

Vol. 530 R. Wapler, Unemployment, Market Structure and Growth. XXVII, 207 pages. 2003. 

Keywords Emissions trading Firm behaviour Market structure Competitiveness Grandfathering Cournot... 

The implications from this are that firms should be expected to maximize the dual objectives of profits and sales if (1) managers are powerful relative to shareholders, or (2) the market structure is oligopolistic and quantity leadership provides a profit advantage. It follows that managers might find it optimal to use the lump sum represented by their grandfathered allowances as a war chest with which to reduce prices and increase sales in the output market, in an attempt to take Stackelberg leadership, as outlined earlier. 

The significance of this market structure is that firms pass less of a marginal cost increase through to their customers than firms in a perfectly competitive market would do. 

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