Technological innovations often formulate new market regimes and create incentives to abandon existing, less attractive ones. However, this decision depends not only on market forces, such as economic and technological ...

Two-part pricing (the Netflix model) has recently been proposed instead of uniform pricing for pharmaceuticals. Under two-part pricing the health plan pays a fixed fee for access to a drug at unit prices equal to marginal ...

A long history in economics going back to Adam Smith has argued that people give primacy to merit – rather than luck – in distributive choices. We provide a theoretical framework formalizing the merit primacy effect, and ...

We study the incentives of drug producers to develop predictive biomarkers, taking into account strategic interaction between drug producers and health plans. For this purpose, we develop a two-dimensional spatial framework ...