- Who Benefits from New Medical Technologies? Estimates of Consumer and Producer Surpluses for HIV/AIDS Drugs
Recipient of the
2007 Eugene Garfield Award- Tomas J. Philipson, University of Chicago
Anupam B. Jena, University of Chicago
- Abstract
- The social value of an innovation is comprised of the value to consumers and the value to innovators. We estimate that for the HIV/AIDS therapies that entered the market from the late 1980’s onwards, innovators appropriated only 5% of the social surplus arising from these new technologies. Despite the high annual costs of these drugs to patients, the low share of social surplus going to innovators raises concerns about advocating cost-effectiveness criteria that would further reduce this share, and hence further reduce incentives for innovation.
- Recommended Citation
- Tomas J. Philipson and Anupam B. Jena
(2006)
"Who Benefits from New Medical Technologies? Estimates of Consumer and Producer Surpluses for HIV/AIDS Drugs,"
Forum for Health Economics & Policy:
Vol. 9: Iss. 2
(Biomedical Research and the Economy), Article 3.
http://www.bepress.com/fhep/biomedical_research/3
