We use a public economics framework to consider how pharmaceuticals should be priced when at least some of the Ramp;D incentive comes from sales revenues. We employ familiar techniques of public finance to relax some of the restrictions implied in the standard use of Ramsey pricing. In the more...

There continues to be widespread criticism of the extension of patent rights on pharmaceuticals in the developing world as required by World Trade Organization membership. This paper examines arguments in favor and against this strengthening of worldwide patent protection. It emphasizes that...