Entry in Pharmaceutical Submarkets: a Bayesian Panel Probit analysis
12:00 - 13:00
Using a dataset on international pharmaceutical companies, we use a Bayesian dynamic panel probit to analyze the presence of regularities in companies decisions to entry. We differentiate our analysis for greeneld (GF) and any entry (AE), to see whether company size regressors, demand, cost and intensity of competition factors have stable effects across submarkets and across different entry types. Most covariates have the same effects across submarkets. Sunk costs are the only exception, having positive effects in some submarkets and negative effects in other submarkets for the AE case.