Do Pharmacists Buy Bayer? Informed Shoppers and the Brand Premium

@inproceedings{Bronnenberg2014DoPB,
  title={Do Pharmacists Buy Bayer? Informed Shoppers and the Brand Premium},
  author={Bart J. Bronnenberg and Jean-Pierre Dub{\'e} and Matthew Gentzkow and Jesse M. Shapiro},
  year={2014}
}
We estimate the effect of information and expertise on consumers’ willingness to pay for national brands in physically homogeneous product categories. In a detailed case study of headache remedies we find that more informed or expert consumers are less likely to pay extra to buy national brands, with pharmacists choosing them over store brands only 9 percent of the time, compared to 26 percent of the time for the average consumer. In a similar case study of pantry staples such as salt and sugar… CONTINUE READING

Citations

Publications citing this paper.
SHOWING 1-10 OF 48 CITATIONS

Frictions or Mental Gaps: What’s Behind the Information We (Don’t) Use and When Do We Care?

  • The journal of economic perspectives : a journal of the American Economic Association
  • 2018
VIEW 9 EXCERPTS
CITES BACKGROUND
HIGHLY INFLUENCED

References

Publications referenced by this paper.
SHOWING 1-10 OF 58 REFERENCES

Advertisements impact the physiological efficacy of a branded drug.

  • Proceedings of the National Academy of Sciences of the United States of America
  • 2013

Rehavi, ‘‘Physicians Treating Physicians: Information and Incentives in Childbirth,’

Johnson, M Erin, M. Marit
  • NBER Working Paper 19242,
  • 2013

An Increase in Scrutiny for Generics,’

Thomas, Katie
  • New York Times, October
  • 2012

Gentzkow, ‘‘The Evolution of Brand Preferences: Evidence from Consumer Packaged Goods,’

Bronnenberg, J Bart, Jean-Pierre Dubé, Matthew
  • American Economic Review,
  • 2012

Lovenheim, ‘‘The Heterogeneous Geographic and Socioeconomic Incidence of Cigarette Taxes: Evidence from Nielsen Homescan Data,’

Harding, Matthew, Ephraim Leibtag, F Michael
  • American Economic Journal: Economic Policy,
  • 2012