Acta academica karviniensia 2014, 14(2):149-157 | DOI: 10.25142/aak.2014.036

PHARMACEUTICAL PRICE REGULATION IN THE THEORY OF REDISTRIBUTION SYSTEMS

Veronika Svatošová¹, Jan Žahour², Zita Košnarová³, Bohuslav Sekerka⁴

¹ University of Pardubice, Faculty Economics and Administration, Studentská 84, 532 10 Pardubice, Email: veronika.svatosova@upce.cz

² University of Pardubice, Faculty Economics and Administration, Studentská 84, 532 10 Pardubice, Email: jzahour@seznam.cz

³ University of Pardubice, Faculty Economics and Administration, Studentská 84, 532 10 Pardubice, Email: zita.kosnarova@upce.cz

⁴ University of Pardubice, Faculty Economics and Administration, Studentská 84, 532 10 Pardubice, Email: bohuslav.sekerka@upce.cz

Nowadays, a firm has to, not only, follow the outside environment and predominantly its field environment where it constantly maps customers' behaviour, but the firm has to also perceive the inside environment. Firm price making represents the key role. This paper describes pharmaceutical market and its rules of price making. As remedies should be available to anyone, it is obvious that the market is regulated by state. Products are divided into groups according to their prices. The groups are identified by the highest possible percentage of margin that can be made by a particular product. On the basis of publicly available data this paper analyses behaviour of producers and distributors and looks for similar characteristics of such behaviour. The goal of this article is to analyse current pharmaceutical market in relation with regulated prices and on this basis to describe optimal profit margin on this market. Today's economy results from more or less theoretical findings that cannot be fully compatible with economic reality. This situation is illustrated by game theory and consequently arising theory of redistribution systems. When creating theoretical visions, it is necessary to go basically from known patterns of real economy. This paper is also focused on practical usage of game theory and theory of redistribution systems on pharmaceutical market through research of redistribution of regulated margin between various subjects of supply chain.

Keywords: optimal profit margin, pharmaceutical market, profit margin, regulated margin, theory of redistribution systems

JEL classification: D49, L50, M29

Received: October 7, 2011; Accepted: June 16, 2014; Published: June 30, 2014  Show citation