Department of Economics
579 Serra Mall
Stanford, CA 94305
Institutional Affiliation: Stanford University
NBER Working Papers and Publications
|February 2009||Towards an Efficient Mechanism for Prescription Drug Procurement|
with Michael Schwarz: w14718
This paper applies ideas from mechanism design to model procurement of prescription drugs. We present a mechanism for government-funded market-driven drug procurement that achieves very close to full static efficiency -- all members have access to all but at most a single drug -- without distorting incentives for innovation.