Competitive Bidding in Drug Procurement: Evidence from China
研究2019年中国在九个省份引入药品竞争性招标的效果，发现平均药价下降47.4%，仿制药降价75.0%，并通过均衡模型权衡降价与选择扭曲，对政策制定者和卫生经济学者有参考价值。
We study the equilibrium effects of introducing competitive bidding in drug procurement. In 2019, China introduced a competitive bidding program where drug companies bid for a prespecified procurement quantity in nine provinces. Using a difference-in-differences design, we show the program reduced average drug prices by 47.4 percent. Generic drugs won most bids and cut prices by 75.0 percent. We develop an equilibrium model to quantify the trade-off between lower prices and potential choice distortions. Competitive bidding increases consumer welfare if policymakers believe consumers should value branded and bioequivalent generic drugs equally. The program also reduced government expenditure on insurance by 19.8 percent.