This study investigates the effects direct to consumer advertisements (DTCA) has on price and demand in the pharmaceutical industry. Using a cross-section model to test 27 advertised prescription drugs for the years 2009 and 2010 the variables are constructed from relevant literature, empirical findings, and laws of demand. The other variables being affected by price are the number of prescription drugs competing in a market, size of the market, number of years a firm has been out on the market, and the intensity of price. The statistical analysis provides evidence that DTCA has an effect on advertised prescription drugs.
McGann, Casey, "Complimentary Market: the Study of the Impact of Direct-To-Consumer Advertising on the Prices of Prescription Drugs in the Pharmaceutical Drug Industry" (2012). Senior Independent Study Theses. Paper 766.
Bachelor of Arts
Senior Independent Study Thesis
© Copyright 2012 Casey McGann