This paper quantifies the impact of horizontal mergers on the prices of drugs. We study all mergers between two publicly traded pharmaceutical companies working in the US between 2010 and 2015 and their effect on their drugs prices. Using a differences-in-differences approach, we estimate that drugs marketed by the merging firms experience an AWP increase of about between 8% and 15% during the five years following the merger. These price increases are present even in markets with more than five competitors.
Trujillo, A. J.; Socal, M.; Anderson, G. Effects of Horizontal Mergers on Prices of Generic Drugs. Journal of Economic Analysis, 2025, 4, 101. https://doi.org/10.58567/jea04020004
AMA Style
Trujillo A J, Socal M, Anderson G. Effects of Horizontal Mergers on Prices of Generic Drugs. Journal of Economic Analysis; 2025, 4(2):101. https://doi.org/10.58567/jea04020004
Chicago/Turabian Style
Trujillo, Antonio J.; Socal, Mariana; Anderson, Gerard 2025. "Effects of Horizontal Mergers on Prices of Generic Drugs" Journal of Economic Analysis 4, no.2:101. https://doi.org/10.58567/jea04020004
APA style
Trujillo, A. J., Socal, M., & Anderson, G. (2025). Effects of Horizontal Mergers on Prices of Generic Drugs. Journal of Economic Analysis, 4(2), 101. https://doi.org/10.58567/jea04020004
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