August 15, 2019
On August 19th, Ms.Soc.Sc Markku Siikanen will defend his doctoral thesis “Industrial Organization Study on Spillovers Between Pharmaceutical Markets”. Siikanen studies the interaction between the hospital and retail pharmaceutical markets in Finland. His thesis belongs to the fields of industrial organization and health economics.
Markku Siikanen contributes to the existing economics literature on pharmaceutical markets by incorporating the interaction of the hospital and retail markets into his analysis of the industry. Previous research has mostly omitted the hospital market from the analysis. Siikanen tests how price setting and pharmaceutical consumption is influenced by the fact that the same products can be simultaneously used in the two overlapping markets. He shows that hospital pharmaceutical use influences retail market pharmaceutical sales in e.g. sex hormones and beta blocking agents. Siikanen also finds that reference price regulation, designated to lower wholesale prices in the retail market, also unintentionally decreased bids public hospitals received in their procurements and the prices they pay for pharmaceuticals.
After his defence, Siikanen will continue his work as a senior researcher specialized in healthcare markets at the VATT Institute for Economic Research.