Aggregate Online Brand Name Pharmacy Price Dynamics for the United States and Mexico

Authors

Thomas M. Fullerton Jr., University of Texas at El PasoFollow
Steven L. Fullerton, University of Texas at El PasoFollow

Publication Date

5-2022

Comments

Fullerton, Thomas M., Jr., and Steven L. Fullerton. 2022. Aggregate Online Brand Name Pharmacy Price Dynamics for the United States and Mexico. Economies 10: 112. https://doi.org/10.3390/

Abstract

Virtual cross-border medical tourism allows many residents in the United States to purchase brand name medicines from companies in Mexico without travelling there. Monthly economic reports indicate that the online brand name pharmaceutical product prices in Mexico are noticeably lower than the corresponding internet prices in the United States. There have been very few econometric studies on how these prices are linked and the dynamic nature of those relationships. Results in this study indicate that online medicine prices in Mexico respond very rapidly to online prices changes in the high-price market.