Drivers of public procurement prices: Evidence from pharmaceutical markets
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- dc.contributor.author Allende, Claudia
- dc.contributor.author Atal, Juan Pablo
- dc.contributor.author Carril, Rodrigo
- dc.contributor.author Cuesta, Jose Ignacio
- dc.contributor.author González Lira, Andrés
- dc.contributor.other Universitat Pompeu Fabra. Departament d'Economia i Empresa
- dc.date.accessioned 2024-11-14T10:09:47Z
- dc.date.available 2024-11-14T10:09:47Z
- dc.date.issued 2023-11-01
- dc.date.modified 2024-11-14T10:09:09Z
- dc.description.abstract This paper examines the determinants of public procurement prices using comprehensive data on pharmaceutical purchases by the Chilean public sector. We start by estimating the extent to which different public agencies pay different prices for the same product. These buyer effects are sizable, and the difference between average prices paid by buyers at the 10th and 90th percentiles is 16%. Our main set of results is related to the role of market structure. The variation in market structure explains three times more variation in procurement prices than buyer effects. Moreover, using exogenous variation from patent expirations, we estimate that the entry of an additional vendor decreases average procurement prices by 11.7%, which is 72% of the gap between average prices paid by buyers at the 10th and 90th percentiles of the distribution of buyer effects. These results suggest that supply-side factors are key determinants of public procurement prices and that their quantitative importance may exceed that of demand-side factors previously emphasized in the literature.
- dc.format.mimetype application/pdf*
- dc.identifier https://econ-papers.upf.edu/ca/paper.php?id=1874
- dc.identifier.citation
- dc.identifier.uri http://hdl.handle.net/10230/68606
- dc.language.iso eng
- dc.relation.ispartofseries Economics and Business Working Papers Series; 1874
- dc.rights L'accés als continguts d'aquest document queda condicionat a l'acceptació de les condicions d'ús establertes per la següent llicència Creative Commons
- dc.rights.accessRights info:eu-repo/semantics/openAccess
- dc.rights.uri http://creativecommons.org/licenses/by-nc-nd/3.0/es/
- dc.subject.keyword procurement
- dc.subject.keyword bureaucracy
- dc.subject.keyword competition
- dc.subject.keyword pharmaceutical drugs
- dc.subject.keyword Business Economics and Industrial Organization
- dc.title Drivers of public procurement prices: Evidence from pharmaceutical markets
- dc.title.alternative
- dc.type info:eu-repo/semantics/workingPaper