Blockchain adoption of pharmaceutical firms in a competitive market: Pricing, drug traceability and consumer awareness

IF 9.8 1区 工程技术 Q1 ENGINEERING, INDUSTRIAL International Journal of Production Economics Pub Date : 2024-08-03 DOI:10.1016/j.ijpe.2024.109356
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Abstract

To cope with counterfeit drugs reaching consumers all over the world, pharmaceutical firms increasingly regard blockchain technology (BCT) as a promising solution to achieve drug traceability. This study proposes a game-theoretic model to investigate the impact of BCT adoption on pharmaceutical firms’ pricing and performance in a competitive market, where one firm offers a branded drug and the other offers a generic version. We consider three contrastive cases with no BCT adoption, unilateral BCT adoption of the branded drug firm and bilateral BCT adoption and characterize consumer traceability awareness, which represents the fraction of consumers sensitive to drug traceability. We find that when BCT is unilaterally adopted, a high consumer traceability awareness level may lead to either higher or lower drug prices. The bilateral adoption of BCT always benefits the generic drug firm due to the enhanced drug traceability, but may damage the branded drug firm attributed to the mitigated differentiation between the two drugs. Compared with the unilateral adoption of BCT, bilaterally adopting BCT can lead to a win-win or lose-lose outcome, depending on the trade-off of drug traceability, drug differentiation and pricing competition. In addition, the adoption of BCT improves consumer welfare when consumers hold a high level of traceability awareness.

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制药公司在竞争激烈的市场中采用区块链:定价、药品溯源和消费者意识
为了应对假药流入世界各地消费者手中的问题,制药公司越来越多地将区块链技术(BCT)视为实现药品可追溯性的一种有前途的解决方案。本研究提出了一个博弈论模型,以研究在一家公司提供品牌药、另一家公司提供仿制药的竞争市场中,采用区块链技术对制药公司定价和绩效的影响。我们考虑了不采用生物追踪技术、品牌药企单边采用生物追踪技术和双边采用生物追踪技术的三种对比情况,并描述了消费者的追踪意识,即对药品追踪敏感的消费者比例。我们发现,当单边采用 BCT 时,消费者较高的可追溯意识水平可能会导致药品价格上涨或下降。由于药品可追溯性的增强,双边采用 BCT 总是有利于仿制药企业,但可能会损害品牌药企业,因为两种药品之间的差异会减弱。与单边采用生物技术相比,双边采用生物技术会导致双赢或双输的结果,这取决于药品可追溯性、药品差异化和定价竞争之间的权衡。此外,当消费者具有较高的可追溯意识时,采用 BCT 还能提高消费者福利。
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来源期刊
International Journal of Production Economics
International Journal of Production Economics 管理科学-工程:工业
CiteScore
21.40
自引率
7.50%
发文量
266
审稿时长
52 days
期刊介绍: The International Journal of Production Economics focuses on the interface between engineering and management. It covers all aspects of manufacturing and process industries, as well as production in general. The journal is interdisciplinary, considering activities throughout the product life cycle and material flow cycle. It aims to disseminate knowledge for improving industrial practice and strengthening the theoretical base for decision making. The journal serves as a forum for exchanging ideas and presenting new developments in theory and application, combining academic standards with practical value for industrial applications.
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