Retail prices controls

Price control on prescription drugs Japan, the world s second largest drug market, has led the way by imposing yearly reductions on drug retail prices... 

The current technological status of small (0.5-5 kWe) PEM, SOFC, AFC and PAFC fuel cell stationary units, was recently reviewed by Staffed et al. (2007) (Table 3.12). The system efficiency refers to electrical losses of the fuel-cell system (fans, pumps, control) and the current conditioning unit (transformer, inverter), while total efficiency refers to both electrical power and heat cogeneration. Cost estimations refer to mass-produced fuel-cell systems according to today s state-of-the-art manufacture technologies and materials, while current retail prices of demonstration fuel-cell systems are in the range of 10,000-100,000 / kWe (Staffed et al., 2007). 

There is price control in both hospitals and pharmacies. In hospitals, products are eligible for reimbursement under the national health insurance scheme and are price controlled. In pharmacies, a standard retail price system is in force (30% markup on manufacturer s plant delivery price). Patent protection has been available since July 1987. 

The U.K. pharmaceutical industry is the fourth largest exporter of drugs in the world and the third leading export industry in the United Kingdom (22). How much of this success is due to the PPRS is a matter of conjecture, but the results are at least consistent with the second goal of the scheme. Whether British drug prices have been controlled by the system is also unclear. The Association of the British Pharmaceutical Industry reports that the U.K. retail price index increased by 29 percent between 1984 and 1989, while the pharmaceutical price index increased by only 22 percent. However, the Economist reported that drug prices outpaced the national inflation rate by more than 4 percent for the same time period (1 17). 

Standard of prescribing and promote the appropriate ( rational ) use of medicines. These well-intended and necessary policies can nevertheless create on the one hand entry barriers for new market participants and on the other domain monopolies (e.g., for pharmacists and doctors). In addition, in seeking to contain the costs of drug consumption, coimtries impose price controls, limit reimbursement of drugs, de-list drugs considered non-essential, provide non-commercial sources of iirformation, and interfere with wholesale and retail margins, and may even restrict the maimer in which medicines are prescribed and used [1]. 

Free pricing of pharmaceuticals is, as has been pointed out in Chapter 1, usually associated with high price levels. The retail price of a medicine is not determined by the real costs of its development, production and distribution, but as with any other commercial products by what the market will bear. From the perspective of safeguarding universal access to health care, it is however necessary that prices be kept at reasonable levels. Most Furopean countries, even those that at one time maintained a system of free pricing, have therefore implemented some form of price control. 

Direct to store delivery, in the 1970s Supplier organized and controlled no retailer range, price, control... 

Federal Milk Orders (1) regulate only Grade A farm milk prices—they do not regulate Grade B milk prices, and (2) establish minimum, not maximum, farm milk prices. Prices paid to farmers are controlled, but there is no direct control of retail prices. 

Consider the case in which the manufactnrer and the retailer are both owned and controlled by a single firm. We also assnme that the manufacturer has the capacity to meet the actual demand of each prodnct over the selling season that starts after period T. In this integrated snpply chain, the unit cost of each product i is given as c and we only need to decide on p(, e.g., the retail price of each product i. (The wholesale price is determined internally between the manufacturer and the retailer.) Suppose that the firm has the flexibility to set and announce the retail price of each product i at the end of period f, where/= 1,. .., T. Once the retail price is announced, we assume that the firm is committed to sell each product atpi during the selling season that starts after period T. This implies that the firm must announce the actual retail price no later than the end of period T. 

---