An RCT embedded in a structural demand model shows that symptom-based labeling sustains price gaps between biologically equivalent OTC drugs. Correcting beliefs raises substitution by 26% and cuts spending by 12%, but induces second-degree price discrimination.
Delayed reimbursement screens hospitals on cost. Evidence from TAVR adoption, 2010-2020, plus a dynamic adoption model in which delay paired with targeted subsidies dominates immediate uniform reimbursement.
Theory and evidence on second-degree price discrimination when pricing itself obscures quality equivalence.