Essays on Technological Change and Contracting in Health Care Markets

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I propose to study the impact of contracting arrangements in healthcare markets (in single-payer or multi-payer health systems) on innovation in health technologies. Specifically, I am interested in how contracting arrangements between the NHS and the pharmaceutical sector impact incentives to innovate welfare-enhancing medicines. In general, I am interested in the industrial organistaion of the pharmaceutical sector.1. What effect do the current contracting arrangements have on R&D incentives at a product level?2. Are there contracting/insurance arrangements that can optimize R&D incentives to develop welfare-enhancing technologies that are cost-effective?3. How does the patent system impact incentives to innovate in the pharmaceutical sector, and how does it influence the industrial organization/market structure of the sector?4. What is the impact of marketing/advertising in pharmaceuticals on consumer welfare? Does the choice distorting impact of advertising offset the information value in pharmaceutical markets?