Title

Are Online Pharmacy Prices Really Lower in Mexico?

Authors

Thomas M. Fullerton Jr., University of Texas at El PasoFollow
Adam G. Walke, University of Texas at El PasoFollow

Publication Date

3-2014

Document Type

Article

Comments

UTEP Border Region Modeling Project

Technical Report TX14-2

A revised version of this study is forthcoming in Asian Economic & Financial Review.

Abstract

Empirical research on international pharmaceutical prices has uncovered numerous interesting commonalities and differences across international markets. This study examines price differences for brand name medicines sold over the Internet in the United States and Mexico. Web sites in both countries advertise their services in English and price their products in dollars. Sample data for 50 topselling medicines are from October 2011 for equal dosages on a per unit basis, exclusive of shipping fees, handling charges, and taxes. For a few medicines, the savings available to consumers who purchase them from companies in Mexico are very large. For most medicines in the sample, the savings are comparable to those available from Internet sources in other countries. Non-parametric test results indicate that the price differences are statistically significant.