Counterfeit Drugs: The Consumer Perspective

Abstract

Much has been written about the problems of the supply of pharmaceutical counterfeits. Common topics include inadequate laws, lack of enforcement, and the absence of criminal penalties for counterfeiters. Less has been written in the legal literature, however, about the demand side of pharmaceuticals. Consumers remain both the root problem and the ultimate destination of counterfeit products. A substantial portion of counterfeit losses can be traced to willing purchases by consumers. Understanding under what temporal, economic, social, and psychological conditions individuals purchase counterfeit medicines is essential to understanding the underlying determinants of demand. This understanding can assist pharmaceutical firms and policy makers to better address consumer needs and ultimately reduce the preference for these potentially dangerous remedies. The purpose of this article is to present a brief discussion of consumer behavior toward counterfeit drugs.

Keywords: intellectual property, counterfeit drugs, medicines, consumer behavior

JEL Classification: I11, O34, L65, D10