Cross elasticity of demand (XED) calculates the change in the quantity demanded of a good when the price for another good changes. In the previous post, we saw instances of high levels of elasticity in the pharmaceutical industry. In the real world, however, the...
In the pharmaceutical industry, from a price and demand standpoint, all drugs are not created equal. In our daily practice with price elasticity, we find several instances in which drugs show a high level of demand variation whenever there is a change in price. Price...
When the price of medicines rises, does the amount demanded fall? And when the price falls, does the demand rise? The law of supply and demand is arguably one of the most solid tenets of microeconomics. It states that, all other things being equal, when the price of...
Artificial Intelligence is instrumental in analyzing inventory management trends. It helps predict drug shortages before they happen. In economics, a shortage happens when the demand for a product exceeds the available supply. Drug shortages are becoming increasingly...
Predicting the final price of an auction has become an increasingly important area of business improvement for healthcare providers. Manufacturers can obtain a large profit by using previously predicted prices. At Konplik Health, we have over 6 years of experience...
In healthcare tendering, game theory principles are often applied to predict the winning price at a tendering opportunity. In our practice at price-based tendering, we more often than not gather evidence that human decision-making is not governed by rationality. Bidders play very often against their own benefit.
Sales through tenders in healthcare are becoming a vital element in the strategy of manufacturers. Healthcare tenders affect purchases of medical supplies and equipment, purchases of medicines (especially for non-patent pharmaceuticals), and services. Healthcare...