Price Discrimination Across Indications in the Pharmaceutical Industry: The Case of Finasteride

The paper analyzed the price differences between Proscar and Propecia, two drugs containing finasteride in different dosages, and argued that this disparity exemplified price discrimination based on the drugs' indications. Proscar was primarily used for treating benign prostatic hyperplasia, while Propecia was marketed for male pattern baldness. Despite having the same active ingredient, the pricing strategy varied significantly, suggesting that the pharmaceutical industry engaged in price discrimination by charging different prices for the same substance depending on its intended use.