Capacity shortages, regulation, and firm incentives in the generic drugs industry
Heese, H. S., & Kemahlioglu-Ziya, E. (2023, June 7). NAVAL RESEARCH LOGISTICS.
author keywords: capacity shortages; healthcare policy; market entry game; oligopoly competition
TL;DR:
A stylized game‐theoretic model of a generic drug market is developed and it is shown that starting with capacity‐supporting interventions always is a dominant strategy when aiming to increase total industry capacity.
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