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Progress in Artificial Economics pp 165–176Cite as

Adaptation of Investments in the Pharmaceutical Industry

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Part of the book series: Lecture Notes in Economics and Mathematical Systems ((LNE,volume 645))

Abstract

Situated in the research field of market structure and strategic behavior, a model of product market competition is developed, showing the impacts of investment adjustments on the success of companies. Placed in an agent-based multi-firm multi-product setting, we study the consequences of the two-step decision of firms to split their budgets in (i) marketing and development activities and (ii) development expenditures into innovative or imitative activities. The model is validated with empirical data of the pharmaceutical industry, with reference to the drug market in Germany. The results show that investment strategies adjusted to the behavior of direct competitors outperforms adjustments based on individual aspiration levels.

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Author information

Authors and Affiliations

  1. Faculty of Economics, Technische Universität Dresden, 01062, Dresden, Germany

    Tino Schütte

Authors
  1. Tino Schütte
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Correspondence to Tino Schütte .

Editor information

Editors and Affiliations

  1. , Applied Mathematics, University Ca' Foscari Venice, Cannaregio 873, Venezia, 30121, Italy

    Marco Li Calzi

  2. , Advanced School of Economics, University Ca' Foscari Venice, Cannaregio 873, Venezia, 30121, Italy

    Lucia Milone

  3. , Applied Mathematics, University Ca' Foscari Venice, Cannaregio 873, Venezia, 30121, Italy

    Paolo Pellizzari

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Schütte, T. (2010). Adaptation of Investments in the Pharmaceutical Industry. In: Li Calzi, M., Milone, L., Pellizzari, P. (eds) Progress in Artificial Economics. Lecture Notes in Economics and Mathematical Systems, vol 645. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-13947-5_14

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  • DOI: https://doi.org/10.1007/978-3-642-13947-5_14

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  • Publisher Name: Springer, Berlin, Heidelberg

  • Print ISBN: 978-3-642-13946-8

  • Online ISBN: 978-3-642-13947-5

  • eBook Packages: Business and EconomicsEconomics and Finance (R0)

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