Date of Award
5-2009
Document Type
Dissertation
Degree Name
Doctor of Philosophy (PhD)
Legacy Department
Economics
Committee Chair/Advisor
Maloney, Michael T
Committee Member
Tollison , Robert
Committee Member
Sauer , Raymond
Committee Member
Warner , John
Abstract
ABSTRACT
This paper empirically analyzes how circumstances affect the creation of strategic alliances in the pharmaceutical industry, and the form these alliances take. The models introduced in this paper use the cost of capital and monitoring costs to predict the timing of the deal, which in turn allows the prediction of the deal type. The deal type is then used to predict payment types used in the deal. Deals are characterized by five payment types; upfront, royalty, milestone, equity, and research payments. Deals are also characterized by one of five deal types; co-development, license, acquisition, outsource, and asset purchase. Each of these is a response to a specific contracting problem such as cost of acquiring capital and asymmetric information. The payment types used in pharmaceutical alliances are chosen to efficiently produce monitoring or purchase assets in the face of asymmetric information and to maximize firm profits.
Recommended Citation
Altman, Jonathan, "CONTRACTING IN THE PHARMACEUTICAL INDUSTRY: PREDICTING PAYMENTS IN STRATEGIC ALLIANCES" (2009). All Dissertations. 375.
https://tigerprints.clemson.edu/all_dissertations/375