Abstract

GALLEGO, JOSÉ. TECHNICAL PROGRESS AND MARKET POWER IN THE PHARMACEUTICAL INDUSTRY. Dyna rev.fac.nac.minas [online]. 2009, vol.76, n.159, pp. 93-102. ISSN 0012-7353.

In this paper, the estimation of market power in the Colombian pharmaceutical industry during 1982:2004 is presented. The result is compared with the estimates made for the United States and Finland . The key conclusion is confirmation of the existence of market power, estimated at a rate of greater than zero Lerner index and Hall markup of more than one; and is equivalent to 0.92 and 0.95 of this power in the United States and Finland, respectively

Keywords : market power; cost margin; Lerner index; pharmaceutical industry.