Generic Aversion and Observational Learning in the Over-the-Counter Drug Market

• 成果类型: Article
• 署名作者: Carrera, Mariana; Villas-boas, Sofia
• 署名单位: National Bureau of Economic Research; Montana State University System; Montana State University Bozeman; University of California System; University of California Berkeley
• 刊物名称: AMERICAN ECONOMIC JOURNAL-APPLIED ECONOMICS
• ISSN/ISSBN: 1945-7782
• DOI: 10.1257/app.20200867
• 发表日期: 2023
• 页码: 380-410
• 关键词: perceptions; INFORMATION; SALIENCE

摘要

Through a labeling intervention at a national retailer, we test three hypotheses for consumer aversion to generic over-the-counter drugs: lack of information on the comparability of generic and brand drugs, inattention to their price differences, and uncertainty about generic quality that can be reduced with information on peer purchase rates. With a difference-in-differences strategy, we find that posted information on the purchases of other customers increases generic purchase shares significantly, while other treat-ments have mixed results. Consumers without prior generic pur-chases appear particularly responsive to this information. These findings have policy implications for promoting evidence-based, cost-effective choices. (JEL D12, D83, L65, L81, M37)