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p. 4 ). Because manufacturing costs for generic drugs are less, the prices are lower. The introduction of generic drugs has kept the overall price of prescription drugs down which is beneficial to the consumer. Cook (1998) states:
Economic theory and various studies suggest that the presence of several therapeutically similar drugs limits manufacturers' ability to raise prices as much as would otherwise be the case...
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Cook (1998) states:
Economic theory and various studies suggest that the presence of several therapeutically similar drugs limits manufacturers' ability to raise prices as much as would otherwise be the case. In addition, brand-name manufacturers are more likely to agree to give purchasers a discount if those purchasers have the option of switching to a generic or me-too competitor...
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