Drug Diffusion Through Peer Networks: The Influence of Industry Payments

Leila Agha, Dan Zeltzer

Research output: Working paper / PreprintWorking paper

Abstract

Pharmaceutical companies market to physicians through individual detailing accompanied by monetary or in-kind transfers. Large compensation payments to a small number of physicians account for most of this promotional spending. Studying US promotional payments and prescriptions for anticoagulant drugs, we investigate how peer influence broadens the payments' reach. Following a compensation payment, prescriptions for the marketed drug increase by both the paid physician and the paid physician's peers. Payments increase prescriptions to both recommended and contraindicated patients. Over three years, marketed anticoagulant prescriptions rose 23 percent due to payments, with peer spillovers contributing a quarter of the increase.
Original languageEnglish
Place of PublicationCambridge, Mass
PublisherNational Bureau of Economic Research
Number of pages44
DOIs
StatePublished - Oct 2019

Publication series

NameNBER working paper series
PublisherNational Bureau of Economic Research
No.26338

ULI Keywords

  • uli

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