Dr Barkley's research looks at collusion around the provision of insulin in Mexico to show how effective market design can improve health outcomes in lower-income countries.
The problem
Despite recent attention in developed countries on how competition – or lack thereof – in markets can negatively affect health outcomes, little is known about how it hinders access to quality care in lower-income countries.
The research
Dr Barkley's research demonstrates how effective market design can improve health outcomes in lower-income countries. Looking at collusion around the provision of insulin in Mexico's pharmaceutical sector and the subsequent policy changes made by health authorities, the study shows simple policy adjustments significantly improved health outcomes for diabetes patients. Through policy interventions, the group of colluding firms was stopped, reducing insulin prices by 78% and increasing availability by 149%. And after the cartel's collapse, diabetes deaths declined by 971 per year.
The impact
The Human Cost of Collusion: Health Effects of a Mexican Insulin Cartel provides new insights for policymakers in developing countries grappling with anticompetitive conduct and weak regulatory institutions. It can be a powerful tool in improving healthcare quality.
Department: Economics
Area: Collusion and health outcomes
Sustainable Development Goals
We align our research activity with the United Nations' Sustainable Development Goals (SDGs).