title: Does generic entry always increase consumer welfare?
abstract: This article examines how the nature of competition between brands in a therapeutic category changes after generic entry and provide a framework for analyzing the effect of generic entry on consumer welfare that takes into account the generic free riding problem. It demonstrates that changes in competition along dimensions other than retail price--such as competition in research and development efforts and in promotional activities--may, in certain situations, result in generic entry having an overall negative impact on consumer welfare.
authors.forename: Henry
authors.initials: H
authors.lastname: Grabowski
authors.forename: Tracy
authors.initials: T
authors.lastname: Lewis
authors.forename: Rahul
authors.initials: R
authors.lastname: Guha
authors.forename: Zoya
authors.initials: Z
authors.lastname: Ivanova
authors.forename: Maria
authors.initials: M
authors.lastname: Salgado
authors.forename: Sally
authors.initials: S
authors.lastname: Woodhouse
mesh_terms: D003254:Consumer Advocacy; D016527:Drug Costs; D016568:Drugs, Generic; D004465:Economic Competition; D006801:Humans; D014481:United States
chemical_list: D016568:Drugs, Generic