The Pharmaceutical Market's Complaining Process: An Application of Hirschman's Theory to a Public Policy Problem

Abstract

The pharmaceutical industry provides products to society that improve the health status of its population. It currently performs in a free market system, although the products and promotional material are subject to regulations imposed by the Food and Drug Administration (FDA). Given the unique characteristics of the prescription drug market, its responsiveness to consumer needs is questioned by policy makers. Hirschman's theory for explaining consumer-industry relationships provides a mechanism of market evaluation unique
from traditional static economic analysis. This paper begins by asking patients, who will be referred to as consumers, if they are bothered with three aspects of the prescription drug product-safety, effectiveness, and price. The second part describes the complaining process in the prescription drug market. The contribution provided by this paper is the application of Hirschman's theory to a public policy question.