A Structural Model of Correlated Learning and Late-Mover Advantages: The Case of Statins

Published Online:https://doi.org/10.1287/mnsc.2018.3221

References

  • Arrow K (1962) Economic welfare and the allocation of resources for invention. Committee on Economic Growth of the Social Science Research Council, eds. The Rate and Direction of Inventive Activity: Economic and Social Factors (Princeton University Press, Princeton, NJ), 609–626.CrossrefGoogle Scholar
  • Azoulay P (2002) Do pharmaceutical sales respond to scientific evidence? J. Econom. Management Strategy 11(4):551–594.CrossrefGoogle Scholar
  • Berndt ER, Bui LT, Lucking-Reiley DH, Urban GL (1996) The roles of marketing, product quality and price competition in the growth and composition of the U.S. antiulcer drug industry. Bresnahan TF, Gordon RJ, eds. The Economics of New Goods, vol. 58 (University of Chicago Press, Chicago), 277–328.Google Scholar
  • Chan T, Narasimhan C, Xie Y (2013) Treatment effectiveness and side effects: A model of physician learning. Management Sci. 59(6):1309–1325.LinkGoogle Scholar
  • Ching AT (2010a) A dynamic oligopoly structural model for the prescription drug market after patent expiration. Internat. Econom. Rev. 51(4):1175–1207.CrossrefGoogle Scholar
  • Ching AT (2010b) Consumer learning and heterogeneity: Dynamics of demand for prescription drugs after patent expiration. Internat. J. Indust. Organ. 28(6):619–638.CrossrefGoogle Scholar
  • Ching AT, Ishihara M (2010) The effects of detailing on prescribing decisions under quality uncertainty. Quant. Marketing Econom. 8(2):123–165.CrossrefGoogle Scholar
  • Ching AT, Ishihara M (2012) Measuring the informative and persuasive roles of detailing on prescribing decisions. Management Sci. 58(7):1374–1387.LinkGoogle Scholar
  • Ching AT, Erdem T, Keane M (2009) The price consideration model of brand choice. J. Appl. Econom. 24(3):393–420.CrossrefGoogle Scholar
  • Ching AT, Erdem T, Keane MP (2013) Learning models: An assessment of progress, challenges, and new developments. Marketing Sci. 32(6):913–938.LinkGoogle Scholar
  • Ching AT, Erdem T, Keane MP (2014) A simple method to estimate the roles of learning, inventories and category consideration in consumer choice. J. Choice Model. 13:60–72.CrossrefGoogle Scholar
  • Ching AT, Erdem T, Keane MP (2017) Empirical models of learning dynamics: A survey of recent developments. Wierenga B, van der Lans R, eds. Handbook of Marketing Decision Models, 2nd ed., International Series in Operations Research & Management Science, vol. 254 (Springer, Cham, Switzerland), 223–257.CrossrefGoogle Scholar
  • Ching AT, Erdem T, Keane MP (2019) How much do consumers know about the quality of products? Evidence from the diaper market. Japanese Econom. Rev. Forthcoming.Google Scholar
  • Ching AT, Clark RC, Horstmann IJ, Lim H (2016) The effects of publicity on demand: The case of anti-cholesterol drugs. Marketing Sci. 35(1):158–181.LinkGoogle Scholar
  • Chintagunta PK, Renna Jiang R, Jin GZ (2009) Information, learning, and drug diffusion: The case of cox-2 inhibitors. Quant. Marketing Econom. 7(4):399–443.CrossrefGoogle Scholar
  • Cholesterol Treatment Trialists’ Collaborators (2005) Efficacy and safety of cholesterol-lowering treatment: Prospective meta-analysis of data from 90,056 participants in 14 randomised trials of statins. Lancet 366(9493):1267–1278.CrossrefGoogle Scholar
  • Cosh C (2010) National pharmacare, as run by omniscient angels. Maclean's (September 18), http://www2.macleans.ca/2010/09/18/national-pharmacare-as-run-by-omniscient-angels/.Google Scholar
  • Crawford GS, Shum M (2005) Uncertainty and learning in pharmaceutical demand. Econometrica 73(4):1137–1173.CrossrefGoogle Scholar
  • DeGroot M (1970) Optimal Statistical Decisions (McGraw-Hill, New York).Google Scholar
  • Delahoy PJ, Magliano DJ, Webb K, Grobler M, Liew D (2009) The relationship between reduction in low-density lipoprotein cholesterol by statins and reduction in risk of cardiovascular outcomes: An updated meta-analysis. Clinical Therapeutics 31(2):236–244.CrossrefGoogle Scholar
  • Erdem T (1998) An empirical analysis of umbrella branding. J. Marketing Res. 35(3):339–351.CrossrefGoogle Scholar
  • Erdem T, Keane MP (1996) Decision-making under uncertainty: Capturing dynamic brand choice processes in turbulent consumer goods markets. Marketing Sci. 15(1):1–20.LinkGoogle Scholar
  • Erdem T, Sun B (2002) An empirical investigation of spillover effects of marketing mix strategy in umbrella branding. J. Marketing Res. 39(4):408–420.CrossrefGoogle Scholar
  • Gallant AR, Hong H, Khwaja A (2018) The dynamic spillovers of entry: An application to the generic drug industry. Management Sci. 64(3):1189–1211.LinkGoogle Scholar
  • Ghemawat P (1986) Sustainable advantage. Harvard Bus. Rev. 64(5): 53–58.Google Scholar
  • Ghemawat P, Spence M (1985) Learning curve spillovers and market performance. Quart. J. Econom. 100(Suppl):839–852.Google Scholar
  • Golder PN, Tellis GJ (1993) Pioneer advantage: Marketing logic or marketing legend? J. Marketing Res. 30(2):158–170.CrossrefGoogle Scholar
  • Guasch JL, Weiss A (1980) Wages as sorting mechanisms in competitive markets with asymmetric information: A theory of testing. Rev. Econom. Stud. 47(4):653–664.CrossrefGoogle Scholar
  • Heckman JJ (1981) The incidental parameters problem and the problem of initial condition in estimating a discrete time-discrete data stochastic process. Manski CF, McFadden DL, eds. Structural Analysis of Discrete Data and Econometric Applications (MIT Press, Cambridge, MA), 179–195.Google Scholar
  • Janakiraman R, Sismeiro C, Dutta S (2009) Perception spillovers across competing brands: A disaggregate model of how and when. J. Marketing Res. 46(4):467–481.CrossrefGoogle Scholar
  • Law MR, Wald NJ, Rudnicka AR (2003) Quantifying effect of statins on low density lipoprotein cholesterol, ischaemic heart disease, and stroke: Systematic review and meta-analysis. BMJ 326(7404):1423.CrossrefGoogle Scholar
  • Leffler KB (1981) Persuasion or information? The economics of prescription drug advertising. J. Law Econom. 24(1):45–74.CrossrefGoogle Scholar
  • Lieberman MB (1987) The learning curve, diffusion, and competitive strategy. Strategic Management J. 8(5):441–452.CrossrefGoogle Scholar
  • Liu H, Liu Q, Chintagunta PK (2017) Promotion spillovers: Drug detailing in combination therapy. Marketing Sci. 36(3):382–401.LinkGoogle Scholar
  • Liu Q, Steenburgh TJ, Gupta S (2015) The cross attributes flexible substitution logit: Uncovering category expansion and share impacts of marketing instruments. Marketing Sci. 34(1):144–159.LinkGoogle Scholar
  • Marcoul P, Weninger Q (2008) Search and active learning with correlated information: Empirical evidence from mid-Atlantic clam fishermen. J. Econom. Dynam. Control 32(6):1921–1948.CrossrefGoogle Scholar
  • Narayanan S, Manchanda P, Chintagunta PK (2005) Temporal differences in the role of marketing communication in new product categories. J. Marketing Res. 42(3):278–290.CrossrefGoogle Scholar
  • Neslin SA, Rhoads EE, Wolfson P (2009) A model and empirical analysis of patient compliance and persistence in pharmaceuticals. Working paper, Dartmouth College, Hanover, NH.Google Scholar
  • Park A (2008) Is Vytorin a failure? Time (January 15), http://www.time.com/time/health/article/0,8599,1703827,00.html.Google Scholar
  • Reinganum J (1983) Uncertain innovation and the persistence of monopoly. Amer. Econom. Rev. 73(4):741–748.Google Scholar
  • Schumpeter JA (1961) The Theory of Economic Development: An Inquiry Into Profits, Capital, Credit, Interest, and the Business Cycle (Oxford University Press, Oxford, UK).Google Scholar
  • Shapiro BT (2018) Positive spillovers and free riding in advertising of prescription pharmaceuticals: The case of antidepressants. J. Political Econom. 126(1):381–437.CrossrefGoogle Scholar
  • Simon F, Kotler P (2003) Building Global Biobrands: Taking Biotechnology to Market (Free Press, New York).Google Scholar
  • Spence M (1984) Cost reduction, competition, and industry performance. Econometrica 52(1):101–121.CrossrefGoogle Scholar
  • Tang M-J (1988) An economic perspective on escalating commitment. Strategic Management J. 9(S1):79–92.CrossrefGoogle Scholar
  • Zhou Z, Rahme E, Pilote L (2006) Are statins created equal? Evidence from randomized trials of pravastatin, simvastatin, and atorvastatin for cardiovascular disease prevention. Amer. Heart J. 151(2):273–281.CrossrefGoogle Scholar
INFORMS site uses cookies to store information on your computer. Some are essential to make our site work; Others help us improve the user experience. By using this site, you consent to the placement of these cookies. Please read our Privacy Statement to learn more.