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Parallel imports, innovations and national welfare: The role of the sizes of the income classes and national markets for health care.

Acharyya, Rajat, Garcia-Alonso, Maria D C (2008) Parallel imports, innovations and national welfare: The role of the sizes of the income classes and national markets for health care. Singapore Economic Review, 53 No. (1). pp. 57-79. ISSN 0217-5908. (KAR id:9505)

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Abstract

This paper shows that regardless of any intra-country income differences, parallel imports result in a lower level of health-care innovation but, contrary to popular as well as conventional theoretical wisdom, a lower price in the Third World compared to market-based discrimination. Despite such a lower price, however, parallel imports unambiguously make all buyers in the Third World worse off when intra-country income disparity exists. On the other hand, even discarding the MNC's profit, there will be cases in which the richer country prefers price discrimination as well. That is, in those cases, no countries will have any incentive under the welfare criterion to undo price discrimination, contrary to Richardson

Item Type: Article
Uncontrolled keywords: parallel imports; price discrimination; health-care innovation; market size; income distribution
Subjects: H Social Sciences
Divisions: Divisions > Division of Human and Social Sciences > School of Economics
Depositing User: Maria Garcia-Alonso
Date Deposited: 18 Mar 2009 15:51 UTC
Last Modified: 16 Nov 2021 09:48 UTC
Resource URI: https://kar.kent.ac.uk/id/eprint/9505 (The current URI for this page, for reference purposes)
Garcia-Alonso, Maria D C: https://orcid.org/0000-0002-4457-3332
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