Competition and uncertainty in healthcare: the Swedish pharmacy market

Access to medicines affects all people in society and is important for achieving good health and quality of life. All individuals need to have access to a wide range of good quality medicines at good prices within a reasonable distance. Despite the fact that the supply of medicines is the subject of lively debates both in Sweden and internationally - not least in the wake of the COVID-19 pandemic - there is a lack of knowledge about the functioning of the pharmacy market. The aim and objective of this research project is to study competition under uncertainty in the Swedish pharmacy market after the re-regulation in 2009. The project contributes to the international research front in economics and econometrics. We develop analytical tools applied to unique and large datasets for all Swedish pharmacies and their products and employees. We analyze consumer behavior and competition between pharmacies over time in different regions. One advantage is that the methodological approach together with detailed data makes it possible to adequately evaluate changes in the market due to, among other things, new establishments and subsidies to pharmacies in sparsely populated areas. For example, we answer: How do product ranges, prices and availability change in the short and long term? Are there regional differences? The researchers are based in the US, Belgium and Sweden. Well-established communication channels are used to disseminate results to policy makers and the public.