In this thesis, the impact a platform business model can have on the healthcare sector is examined. Firstly, the study elaborates on the mechanics and benefits of the platform business model as well as on the reasons why the healthcare sector has yet to be revolutionised by platforms, before narrowing down to the case of e-pharmacy ‘1mg’ operating in the troubled Indian pharmaceutical industry. Subsequently, the effect of decreased information asymmetries regarding brand substitution on medicine expenditure is analysed using a fixed effects regression and descriptive evidence. The results show that the decrease of the information asymmetry regarding alternative brands and possible price savings realised by 1mg do not lead to users substituting towards less costly medicine brands. This study contributes the lack of price saving substitutions to a dearth of freedom for patients to purchase brands of their choosing, stemming from inapt regulations and institutional voids. Therefore, the study concludes with policy recommendations directed at releasing the full potential of e-pharmacy enabled decreases in medication expenditure.

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A.S. Bhaskarabhatla
hdl.handle.net/2105/47780
Business Economics
Erasmus School of Economics

Richard Kempen. (2019, August 14). Platform revolution in healthcare: the role of information asymmetries on medication expenditure. Business Economics. Retrieved from http://hdl.handle.net/2105/47780