We found a match
Your institution may have rights to this item. Sign in to continue.
- Title
Market failure in the pharmaceutical industry and how it can be overcome: the CureShare mechanism.
- Authors
Levy, Moshe; Rizansky, Adi
- Abstract
Allowing patients to take part in the initial investment for the development of cures for their illnesses can, under certain conditions, lead to the development of drugs that would have otherwise not been developed and to a dramatic welfare increase. We theoretically analyze these conditions. The suggested patient investment mechanism, which we call CureShare, does not involve any philanthropy or government subsidies. It is simply a way to overcome market failure. Based on empirical data, we estimate that applying this mechanism may save thousands of lives annually and may dramatically improve the quality of many others.
- Subjects
PHARMACEUTICAL industry; MARKET failure; THERAPEUTICS; DRUG development; PHARMACEUTICAL industry &; economics; INVESTMENTS; FINANCE; ACCOUNTING
- Publication
European Journal of Health Economics, 2014, Vol 15, Issue 2, p143
- ISSN
1618-7598
- Publication type
Article
- DOI
10.1007/s10198-013-0461-8