A Markov‐perfect equilibrium model of the impacts of price controls on the performance of the pharmaceutical industry
构建了一个可计算的动态均衡模型，用行业事实校准后预测美国实施价格控制或其他国家放弃控制对药企价值、研发、新药数量和消费者福利的影响。
I introduce a computable dynamic equilibrium model of the pharmaceutical industry, parameterize it using industry facts, and use it to predict what happens if the United States adopts price controls or one or more non‐U.S. countries abandon their controls. The model generates implications for firm value, research and development (R&D), the flow of new drugs, and consumer welfare. I highlight the sensitivity of the results to alternative assumptions about R&D costs, market size, technological opportunities, consumer heterogeneity, the extent to which choices internalize prices, barriers to entry in R&D, the extent to which R&D outcomes are correlated, and the nature of the controls .