Concentration and drug prices in the retail market for malaria treatment in rural Tanzania.

Abstract:

:The impact of market concentration has been little studied in markets for ambulatory care in the developing world, where the retail sector often accounts for a high proportion of treatments. This study begins to address this gap through an analysis of the consumer market for malaria treatment in rural areas of three districts in Tanzania. We developed methods for investigating market definition, sales volumes and concentration, and used these to explore the relationship between antimalarial retail prices and competition.The market was strongly geographically segmented and highly concentrated in terms of antimalarial sales. Antimalarial prices were positively associated with market concentration. High antimalarial prices were likely to be an important factor in the low proportion of care-seekers obtaining appropriate treatment.Retail sector distribution of subsidised antimalarials has been proposed to increase the coverage of effective treatment, but this analysis indicates that local market power may prevent such subsidies from being passed on to rural customers. Policymakers should consider the potential to maintain lower retail prices by decreasing concentration among antimalarial providers and recommending retail price levels.

journal_name

Health Econ

journal_title

Health economics

authors

Goodman C,Kachur SP,Abdulla S,Bloland P,Mills A

doi

10.1002/hec.1473

subject

Has Abstract

pub_date

2009-06-01 00:00:00

pages

727-42

issue

6

eissn

1057-9230

issn

1099-1050

journal_volume

18

pub_type

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