Data on all generic drug entries in the period 1984-1994 are used to estimate which markets heterogeneous potential entrants will decide to enter. I find that organizational experience predicts entry. Firms tend to enter markets with supply and demand characteristics similar to the firm's...

I use data on all generic drug approvals granted from 1984- 1994 to examine whether generic entrants are choosing to enter markets based on the characteristics of their current portfolio of drugs. The findings suggest that a firm's previous experience with a drug or therapy reduces its cost of...

In 1991 a most-favored-customer (MFC) rule was adopted to govern pharmaceutical prices paid by Medicaid. Theoretical models show that an MFC rule commits a firm to compete less aggressively in prices. I find that the price of branded products facing generic competition rose (4% on average)....