Analyzing Evasion of Price Controls and Regulatory Arbitrage in the Drug Industry

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This chapter explores how economists analyze the evasion of price controls and discuss regulatory arbitrage in the drug industry, highlighting strategies used by brand name pharmaceutical companies to prevent the entry of generic drugs and the ongoing battle to prevent exploitation.

Robin Feldman of the University of California Hastings College of Law and author of Drug Wars talks about her book with EconTalk host Russ Roberts. Feldman explores the various ways that pharmaceutical companies try to reduce competition from generic drugs. The conversation includes a discussion of the Hatch-Waxman Act and the sometimes crazy world of patent protection.