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Implementing Differential Pricing for Essential Medicines via Country-Specific Bilateral Negotiated Discounts
Applied Health Economics and Health Policy, 09/18/09
Tetteh EK – It is widely acknowledged that limited access to essential medicines undermines efforts at improving the health and economic well–being of low–income populations. This has spurred on a number of solutions, including differential pricing based on the economics of price discrimination. A desirable feature of differential pricing is its potential ability to reconcile static and dynamic efficiency concerns. There are, however, various shades of differential pricing and this paper aims to evaluate their consistency with economic theory.
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