Research Seminar "Antibiotic resistance, drug prices and entry"

Prof. Albert Ma from the Boston University presents: Antibiotic drug resistance is modeled by an increase in future drug cost due to current consumption. Competition in the medicine market leads to maximum consumption, and results in inefficiency. Drug plans with centralized rationing can alleviate resistance. A monopoly internalizes cost increase, but high prices may adversely affect consumers. A potential entrant must consider competing with an incumbent upon entry. Entry deterence by the incumbent can happen although there is no uncertainty. 

Lecture in English