Determinantes de la dispersión de precios de medicamentos prescritos en la ciudad de Cuenca

Abstract

This study investigates the role that consumer search has over price dispersion by analyzing the retail prices of prescription drugs from pharmacies in the city of Cuenca in the province of Azuay. It was used in the analysis primary information obtained by quotedprescriptions, according to a sample of pure active principles fromthe sample of pharmacies which was selected by a suitable process and was segmented according to criteria of pharmacy proximity to medical services centers. The research evaluated the dispersion by a regression model corrected for heteroscedasticity. The main results obtained showed that in the two sections of the geographic market,quoted prices vary considerably between firms, even after controlling for variation due to firms differences.The empirical analysis gives results consistent with the predictions of a consumer’s model search: prices of prescriptions purchased periodically (which have higher benefits from search process) show significant reductions in dispersion. So, it is beneficial for consumers to compare prices between competitors. Intermediation prices have a direct impact on the dispersion. While particular therapeutic categories showed the need for attention in the relevant market because of the amount of dispersion and the conditions for its maintenance.