Related Experiment Video
Updated: May 2, 2026

Methods for Presenting Real-world Objects Under Controlled Laboratory Conditions
Published on: June 21, 2019
Does generic entry always increase consumer welfare?
Abstract:
This article examines how the nature of competition between brands in a therapeutic category changes after generic entry and provide a framework for analyzing the effect of generic entry on consumer welfare that takes into account the generic free riding problem. It demonstrates that changes in competition along dimensions other than retail price--such as competition in research and development efforts and in promotional activities--may, in certain situations, result in generic entry having an overall negative impact on consumer welfare.
Related Concept Videos
Applications of Integration to Find Consumer Surplus
Dose-Response Relationship: Potency and Efficacy
Pharmaceutical Alternatives: Stability-Related Therapeutic Nonequivalence
Inclusive Fitness
Pharmaceutical Alternatives: Excipients and Impurities-Related Therapeutic Nonequivalence
Increasing Function

