Abstract
Issue/problem Pharmaceutical pricing is a key issue in public health. A commonly used pricing policy is external reference pricing (ERP), which links pharmaceutical prices to prices in selected other countries. A well-studied effect of ERP is that price reductions in one country result in price reductions in all those countries which use this country as reference country. When high income countries (HIC) use middle income countries (MIC) as reference, this linkage effect can de-incentivize producers from offering pharmaceuticals at …
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