摘要：In March 2003 the Norwegian government implemented yardstick based price regulation
schemes on a selection of drugs experiencing generic competition. The retail price cap,
termed “index price”, on a drug (chemical substance) was set equal to the average of the
three lowest producer prices on that drug, plus a fixed wholesale and retail margin. This
is supposed to lower barriers of entry for generic drugs and to trigger price competition.
Using monthly data over the period 1998-2004 for the 6 drugs (chemical entities)
included in the index price system, we estimate a structural model enabling us to examine
the impact of the reform on both demand and market power. Our results suggest that the
index price helped to increase the market shares of generic drugs and succeeded in
triggering price competition
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