Information, Learning, and Drug Diffusion: The Case of Cox-2 Inhibitors
Quantitative Marketing and Economics, 2009

The recent withdrawal of Cox-2 Inhibitors has generated debate on the role of information in drug diffusion: can the market learn the efficacy of new drugs, or does it depend solely on manufacturer advertising and FDA updates?

In this study, Assistant Professor Renna Jiang and co-authors Pradeep K. Chintagunta from the University of Chicago and Ginger Z. Jin from the University of Maryland use a novel data set to study the role of learning in the diffusion of three Cox-2 Inhibitors—Celebrex, Vioxx and Bextra—before the Vioxx withdrawal.