1 option
Research and Market Structure: Evidence from an Antibiotic-Resistant Pathogenic Outbreak / Mayank Aggarwal, Anindya Chakrabarti, Chirantan Chatterjee, Matthew J. Higgins.
- Format:
- Book
- Author/Creator:
- Aggarwal, Mayank.
- Series:
- Working Paper Series (National Bureau of Economic Research) no. w28840.
- NBER working paper series no. w28840
- Language:
- English
- Physical Description:
- 1 online resource: illustrations (black and white);
- Place of Publication:
- Cambridge, Mass. National Bureau of Economic Research 2021.
- Summary:
- Do upstream research shocks impact unconnected downstream product markets? We explore this question using a natural experiment involving a publication that identified a pathogenic outbreak in India involving a carbapenem antibiotic resistant superbug. Consistent with theory, we find that this upstream research shock caused multinational firms selling carbapenem antibiotics in India to reduce their downstream market exposure. Rational antibiotic stewardship implies that we should observe a similar response by domestic Indian firms. Surprisingly, we observe the opposite; domestic Indian firms filled the void in the market left by multinational firms. We confirm this aggregate finding with prescription level data, Indian physicians prescribed fewer focal multinational products relative to domestic firm products. Results are robust to alternate control groups and placebo testing. Implications for antibiotic resistance, global health policy and innovation policy are discussed.
- Notes:
- Print version record
- May 2021.
The Penn Libraries is committed to describing library materials using current, accurate, and responsible language. If you discover outdated or inaccurate language, please fill out this feedback form to report it and suggest alternative language.