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Articles : Parallel Trade in Pharmaceuticals: The Impact on Welfare and Innovation
( Richard P. Rozek ),( Richard T. Rapp ) 세종대학교 경제통합연구소 1992 Journal of Economic Integration Vol.7 No.2
Differences among nations in political, Social, economic, legal and regulatory regimes cause differences in prices across countries, which, in turn, create opportunities for arbitrage or ``parallel trade. As with any form of arbitrage, one effect of parallel trade is to diminish the price differentials that gave rise to the arbitrage opportunity. At least four market situations exist in which parallel trade may reduce welfare and weaken the intellectual property rights of innovators. In these settings, a policy that restricts either parallel trade or incentives for parallel trade yields net economic benefit to society. This paper summarizes these situations.
Parallel Trade in Pharmaceuticals : The Impact on Welfare and Innovation
Rozek, Richaed P.,Rapp, Richard T. 세종대학교 국제경제연구소 1992 Journal of Economic Integration Vol.7 No.2
Difference among nations in political, social, economic, legal and regulatory regimes cause differences in prices across countries, which, in turn, create opportunities for arbitrage or 'parallel trade.' As with any form of arbitrage, one effect of parallel trade is to diminish the price differentials that gave rise to the arbitrage opportunity. At least four market situations exist in which parallel trade may reduce welfare and weaken the intellectual property rights of innovators. In these settings. a policy that restricts either parallel trade or incentives for parallel trade yields net economic benefit to society. This paper summarizes these situations.