Does competition stimulate drug utilization? The impact of changes in market structure on US drug prices, marketing and utilization

► Conventional view: monopolies restrict output and competition will expand output. ► We assess the impact of changes in market structure on U.S. drug prices, marketing and utilization. ► The study uses an extensive amount of data that virtually cover all US prescription over 2000-2004. ► Results: price and marketing decline following entry, but utilization remains constant. ► The net effect of competition on drug utilization is 0.