01035nam a22001097a 4500008004100000100002900041245008400070260003500154300003300189520066800222773003500890240426b           ||||| |||| 00| 0 eng d  aAtal, Juan Pablo et al    a The economics of the public option: Evidence from local pharmaceutical markets  aThe American Economic Review    a114(3), Mar, 2024: p.615-644  aWe study the effects of competition by state-owned firms, leveraging the decentralized entry of public pharmacies to local markets in Chile. Public pharmacies sell the same drugs at a third of private pharmacy prices, because of stronger upstream bargaining and market power in the private sector, but are of lower quality. Public pharmacies induced market segmentation and price increases in the private sector, which benefited the switchers to the public option but harmed the stayers. The countrywide entry of public pharmacies would reduce yearly consumer drug expenditure by 1.6 percent.- Reproduced 

https://www.aeaweb.org/articles?id=10.1257/aer.20211547
  aThe American Economic Review