The Market Design for Formulary Positions
General Economics
2025-02-04 v1 Economics
Abstract
The exchange of rebates for formulary positions is conceptualized as a multi-round combinatorial position auction. This paper develops a linear assignment model of the winners' determination equation of this auction where the bases are net unit prices after unit rebates and expected demand.
Keywords
Cite
@article{arxiv.2502.00970,
title = {The Market Design for Formulary Positions},
author = {Lawrence W. Abrams},
journal= {arXiv preprint arXiv:2502.00970},
year = {2025}
}