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Ansattprofil

Dag Morten Dalen

Professor - Fagressurser

Institutt for samfunnsøkonomi

Biografi

I am Professor of Economics at BI Norwegian Business School. My main research field is regulation and public policy towards markets and tax-funded public services, with an emphasis on the health care sector and pharmaceutical markets. I returned to my professorship in 2018, after having served as provost at BI for 8 years. Currently, I serve on the Board of Directors of Nye Veier – a state-owned company, given the responsibility of planning, building and maintaining major highway infrastructure in Norway. I am also a partner in Vista Analyse, a social science consultancy. See my personal homepage for more information: dmdalen.com

Publikasjoner

Brekke, Kurt Richard; Dalen, Dag Morten & Straume, Odd Rune (2023)

Competing with precision: incentives for developing predictive biomarker tests

The Scandinavian Journal of Economics, 126(1), s. 60- 97. Doi: 10.1111/sjoe.12543 - Fulltekst i vitenarkiv

We study the incentives of drug producers to develop predictive biomarkers, taking into account strategic interaction between drug producers and health plans. For this purpose, we develop a two-dimensional spatial framework that allows us to capture the informational role of biomarkers and their effects on price competition and treatment choices. Although biomarkers increase the information available to prescribers, we identify an anticompetitive effect on the prices set by producers of therapeutically substitutable drugs. We also find that better information about each patient's most therapeutically appropriate drug does not necessarily lead to more efficient treatment outcomes.

Brekke, Kurt Richard; Dalen, Dag Morten & Straume, Odd Rune (2023)

The price of cost-effectiveness thresholds under therapeutic competition in pharmaceutical markets

Journal of Health Economics, 90 Doi: 10.1016/j.jhealeco.2023.102778 - Fulltekst i vitenarkiv

Health systems around world are increasingly adopting cost-effectiveness (CE) analysis to inform decisions about access and reimbursement. We study how CE thresholds imposed by a health plan for granting reimbursement affect drug producers’ pricing incentives and patients’ access to new drugs. Analysing a sequential pricing game between an incumbent drug producer and a potential entrant with a new drug, we show that CE thresholds may have adverse effects for payers and patients. A stricter CE threshold may induce the incumbent to switch pricing strategy from entry accommodation to entry deterrence, limiting patients’ access to the new drug. Otherwise, irrespective of whether entry is deterred or accommodated, a stricter CE threshold is never pro-competitive and may in fact facilitate a collusive outcome with higher prices of both drugs. Compared to a laissez-faire policy, the use of CE thresholds when an incumbent monopolist is challenged by therapeutic substitutes can only increase the surplus of a health plan if it leads to entry deterrence. In this case the price reduction by the incumbent necessary to deter entry outweighs the health loss to patients who do not get access to the new drug.

Brekke, Kurt Richard; Dalen, Dag Morten & Straume, Odd Rune (2022)

Paying for pharmaceuticals: uniform pricing versus two-part tariffs

Journal of Health Economics, 83 Doi: 10.1016/j.jhealeco.2022.102613 - Fulltekst i vitenarkiv

Two-part pricing (the Netflix model) has recently been proposed instead of uniform pricing for pharmaceuticals. Under two-part pricing the health plan pays a fixed fee for access to a drug at unit prices equal to marginal costs. Despite two-part pricing being socially efficient, we show that the health plan is worse off when the drug producer is a monopolist, as all surplus is extracted. This result is reversed with competition, as two-part pricing yields higher patient utility and lower drug costs for the health plan. However, if we allow for exclusive contracts, uniform pricing is preferred by the health plan. The choice of payment scheme is also shown to influence on the incentives to spend resources on drastic innovations relative to incremental, me-too innovations.

Dalen, Dag Morten; Locatelli, Marilena & Strøm, Steinar Øivind (2021)

Biosimilar bidding in centralized tenders in Norway

Nordic Journal of Health Economics, 9(1), s. 11- 23. Doi: 10.5617/njhe.7394 - Fulltekst i vitenarkiv

Our objective is to study the competition effect of biosimilar entry in centralized tenders for an expensive category or drugs - TNF-inhibitors. We use monthly observations of prices and volumes for all brands and biosimilars in this drug category in Norway, covering the period from Jan. 2006 to Dec. 2016. Descriptive statistics and regression models are used to investigate the impact of biosimilars on the drug price and the effect of the number of brands on the intensity of competition. Both the entry of biosimilars and new branded drugs have increased competition and reduced prices. According to our estimates, an increase in the market share of biosimilars from 10 % to 60 %, will be accompanied with a 50 % reduction in the expected price. Only two years after entry, the first biosimilars in this drug category had gained a market share of 40 % in Norwegian hospitals. Although entry barriers for biosimilars are higher than for generics of chemical substances, significant cost savings are expected from patent expirations of expensive biologics as well. The centralized design of the tenders is an important institutional factor behind the strong competition effect.

Dalen, Dag Morten (2020)

Med forhandlingsmakt skal legemiddelprisene fastsettes

Samfunnsøkonomen, 34(5), s. 62- 70. - Fulltekst i vitenarkiv

Det kommer stadig nye legemidler på markedet som gjør det mulig å forbedre behandlingen av pasienter med alvorlige sykdommer, men disse kommer ofte med en prislapp som vekker oppsikt. Før slike legemidler kommer inn i det offentlig finansierte behandlingstilbudet, må staten og legemiddelfirmaene enes om prisen. Hva kan vi si om utfallet av slike prisforhandlinger, og hvordan bør staten best innrette seg som forhandler? Et naturlig sted å lete etter svar er i Nash-forhandlingsmodellen. I denne artikkelen bringer jeg litt helse inn i den, og drøfter så forhold som påvirker forhandlingsresultatet.

Dalen, Dag Morten; Locatelli, Marilena & Strøm, Steinar Øivind (2018)

An Equilibrium Model Estimated on Pharmaceutical Data

Atlantic Economic Journal, 46(3), s. 281- 296. Doi: 10.1007/s11293-018-9592-8 - Fulltekst i vitenarkiv

The purpose of this paper is to estimate patients’ and doctors’ responses to prices when making a choice between brand name products and generics. We account for the response of pharmacies to government regulation and to prices set by brand name producers. The data from the Norwegian Prescription Database are unique in the sense that we observe prices set by pharmacies as well as by producers. Our results confirm that estimating only the demand side yields biased estimates of consumers’ price responses. We find much stronger price responses when demand and supply are jointly estimated.

Dalen, Dag Morten; Locatelli, Marilena, Sorisio, Enrico & Strøm, Steinar (2014)

Does the Identity of the Third-Party Payer Matter for Prescribing Doctors?

Applied Economics and Finance, 1(1) Doi: 10.11114/aef.v1i1.324

Brekke, Kurt; Dalen, Dag Morten & Holmås, Tor Helge (2014)

Diffusion of pharmaceuticals: cross-country evidence of anti-TNF drugs

European Journal of Health Economics, 15(9), s. 937- 951. Doi: 10.1007/s10198-013-0536-6 - Fulltekst i vitenarkiv

This article studies the diffusion of biopharmaceuticals across European countries, focusing on anti-TNF drugs, which are used to treat autoimmune diseases (e.g., rheumatism, psoriasis). We use detailed sales information on the three brands Remicade, Enbrel and Humira for nine European countries covering the period from the first launch in 2000 until becoming blockbusters in 2009. Descriptive statistics reveal large variations across countries in per-capita consumption and price levels both overall and at the brand level. We explore potential sources for the cross-country consumption differences by estimating several multivariate regression models. Our results show that large parts of the cross-country variation are explained by time-invariant country-specific factors (e.g., disease prevalence, demographics, health care system). We also find that differences in income [gross domestic product (GDP) per capita] and health spending (share of GDP) explain the cross-country variation in consumption, while relative price differences seem to have limited impact.

Dalen, Dag Morten & Moen, Espen R (2012)

Ownership and Cost-Sharing Contracts

Australian Economic Papers, 51(3), s. 134- 146. Doi: 10.1111/j.1467-8454.2012.00428.x

Brekke, Kurt; Dalen, Dag Morten & Strøm, Steinar (2012)

Should pharmaceutical costs be curbed?

Nordic Economic Policy Review, 2, s. 1- 27.

Pharmaceuticals account for almost a fifth of total health spending in OECD-countries. Both pharmaceutical innovations and the aging of the population explain the increasing importance of pharmaceuticals in health care. Due to the importance of patent protection and insurance coverage, pharmaceutical markets are subjected to economic regulation – both on the supply-side and the demand-side. In this paper, we briefly review the Nordic pharmaceutical market, before explaining the main regulatory policy measures taken by governments in these countries. Empirical re-search has been undertaken to investigate regulation and competition, and we provide a review of some of the findings.

Dalen, Dag Morten; Hoel, Michael Olaf & Strøm, Steinar (2011)

Markedsmakt og innovasjon på norsk sokkel

Samfunnsøkonomen, 65(3), s. 40- 45.

Dalen, Dag Morten; Furu, Kari, Locatelli, Marilena & Strøm, Steinar (2011)

Generic substitution: micro evidence from register data in Norway

European Journal of Health Economics, 12(1), s. 49- 59. Doi: 10.1007/s10198-010-0226-6

Dalen, Dag Morten; Hoel, Michael & Strøm, Steinar (2008)

Kalkulasjonsrenten på lang sikt i en usikker verden

Samfunnsøkonomen

Dalen, Dag Morten & Strøm, Steinar (2006)

The pharmaceutical market in Norway

Competition and Welfare: The Norwegian Experience, ed. Lars Sørgard

Dalen, Dag Morten; Strøm, Steinar & Haabeth, Tonje (2006)

Price regulation and generic competition in the pharmaceutical market

European Journal of Health Economics, 7, s. 208- 214.

Dalen, Dag Morten; Moen, Espen R. & Riis, Christian (2006)

Contract renewal and incentives in public procurement

International Journal of Industrial Organization, 24(2), s. 269- 285.

This paper explores how the government's choice of renewal policy in public procurement programs can be used as a mechanism to provide firms with incentives to supply quality. A public service is produced by several firms. The firms participate in a tournament where they are ranked according to the quality of their services, and rewarded in terms of contract renewals. We analyse the firms' incentives to produce high-quality services, and find that they are maximised if 50% of the contracts are renewed. The optimal renewal policy trades off incentive provision (which requires that a relatively large fraction of the firms are replaced each period) against the entry costs of new firms. (c) 2005 Elsevier B.V. All rights reserved.

Dalen, Dag Morten & Gomez-Lobo, Andres (2003)

Yardsticks on the road: Regulatory contracts and cost efficiency in the Norwegian Bus Industry

Transportation, 30, s. 371- 368.

Dalen, Dag Morten; Fehr, Nils-H. M. Von der & Moen, Espen R. (2003)

Regulation with Wage Bargaining

Economic Journal, 113(487), s. 525- 538.

Dalen, Dag Morten (2001)

Reformer i helsesektoren - politikk og økonomisk realiteter

?

Dalen, Dag Morten & Lund, Arild J. (2001)

Håndtering av finansielle kriser: Norges banks rolle

Økonomisk forum, 55(3), s. 12- 17.

Dalen, Dag Morten; Moen, Espen R. & Riis, Christian (2001)

Public Ownership as a Signalling Device

Nordic Journal of Political Economy, 27(1), s. 3- 12.

Dalen, Dag Morten (2000)

Regulering og internasjonal regelverkskonkurranse

NOU 2000:9 Konkurranseflater i finansnæringen

Dalen, Dag Morten (2000)

Konkurranseutsetting av offentlige tjenester

Sosialøkonomen, 54(7), s. 23- 28.

Dalen, Dag Morten (2000)

Catching-up investemnet without regulatory commitment

Journal of Regulatory Economics, 18, s. 133- 150.

Dalen, Dag Morten (1998)

Yardstick competition and investment incentives

?

Brekke, Kurt Richard; Dalen, Dag Morten & Straume, Odd Rune (2022)

Skjerpede krav til kostnadseffektivitet kan øke prisen på nye legemidler

Dagens medisin [Kronikk]

Dalen, Dag Morten (2021)

Vaksinespillet

Dagens medisin [Kronikk]

Dalen, Dag Morten (1)

Bedre legemiddeltilgang med Netflix-metoden?

Dagens medisin [Kronikk]

Brekke, Kurt Richard; Dalen, Dag Morten & Straume, Odd Rune (2023)

Taking the competitor’s pill: when combination therapies enter pharmaceutical markets

[Report]. Institutt for samfunnsøkonomi.

We study the competitive effects of combination therapies in pharmaceutical markets, which crucially hinge on the additional therapeutic value of combinatory use of drugs and the therapeutic substitutability with the most relevant monotherapy. With large additional therapeutic value, the introduction of combination therapies leads to higher prices and, somewhat paradoxically, may reduce the health plan's surplus. Although combination therapies imply that drugs become both substitutes and complements, we show that drug prices increase if the firms are allowed to coordinate their prices. Allowing for price discrimination might increase allocational efficiency, but only at the expense of higher purchasing costs.

Dalen, Dag Morten (2023)

Anbud truer ikke velferdsstaten

[Popular scientific article]. Altinget.no

Dalen, Dag Morten (2023)

Blåreseptanbud – også i praksis må legemiddelutgiftene finansieres

[Popular scientific article]. Altinget.no

Brekke, Kurt Richard; Dalen, Dag Morten & Straume, Odd Rune (2023)

The price of cost-effectiveness thresholds

[Report]. Department of Economics, Norwegian School of Economics.

Health systems around world are increasingly adopting cost-effectiveness (CE) analysis to inform decisions about access and reimbursement. We study how CE thresholds imposed by a health plan for granting reimbursement affect drug producers pricing incentives and patients access to new drugs. Analysing a sequential pricing game between an incumbent drug producer and a potential entrant with a new drug, we show that CE thresholds may have adverse effects for payers and patients. A stricter CE threshold may induce the incumbent to switch pricing strategy from entry accommodation to entry deterrence, limiting patients access to the new drug. Otherwise, irrespective of whether entry is deterred or accommodated, a stricter CE threshold is never pro-competitive and may in fact facilitate a collusive outcome with higher prices of both drugs. Compared to a laissez-faire policy, the use of CE thresholds can only increase the surplus of a health plan if it leads to entry deterrence in which the price reduction by the incumbent necessary to deter entry outweighs the health loss to patients not getting access to the new drug.

Dalen, Dag Morten (2022)

Anbud – så lenge det varer

[Article in business/trade/industry journal]. Dagens medisin

Brekke, Kurt Richard; Dalen, Dag Morten & Straume, Odd Rune (2022)

Competing with precision: incentives for developing predictive biomarker tests

[Report]. Department of Economics, Norwegian School of Economics.

We study the incentives of drug producers to develop predictive biomarkers, taking into account strategic interaction between drug producers and health plans. For this purpose we develop a two-dimensional spatial framework that allows us to capture the informational role of biomarkers and their effects on price competition and treatment choices. Although biomarkers increase the information available to prescribers, we identify an anticompetitive effect on the prices set by producers of therapeutically substitutable drugs. We also nd that better information about each patient s most therapeutically appropriate drug does not necessarily lead to more efficient treatment outcomes.

Dalen, Dag Morten (2020)

Patenter når epidemiene rammer

[Article in business/trade/industry journal]. Dagens medisin

Brekke, Kurt; Dalen, Dag Morten & Holmås, Tor Helge (2013)

Diffusion of Pharmaceuticals: Cross-Country Evidence of Anti-TNF drugs

[Report]. Department of Economics, Norwegian School of Economics.

This paper studies the di¤usion of biopharmaceuticals across European countries, focusing on anti-TNF drugs, which are used to treat autoimmune diseases (e.g., rheumatism, psoriasis). We use detailed sales information on the three brands Remicade, Enbrel and Humira for nine European countries covering the period from the fi…rst launch in 2000 until becoming blockbusters in 2009. Descriptive statistics reveal large variations across countries in per-capita consumption and price levels both overall and at brand level. We explore potential sources for the cross-country consumption differences by estimating several multivariate regression models. Our results show that large parts of the cross-country variation are explained by time-invariant country-speci…c factors (e.g., disease prevalence, demographics, health care system). We also fi…nd that differences in income (GDP per capita) and health spending (share of GDP) explain the cross-country variation in consumption, while relative price differences seem to have limited impact.

Strøm, Steinar; Hoel, Michael Olaf & Dalen, Dag Morten (2012)

Verdsetting av økosystemtjenester

[Report]. Vista Analyse AS.

Hoel, Michael Olaf; Strøm, Steinar & Dalen, Dag Morten (2012)

Tariffering og bruk av gassinfrastruktur

[Report]. Vista Analyse AS.

Dalen, Dag Morten & Riis, Christian (2010)

Konkurranse for innovasjon

[Report]. Handelshøyskolen BI.

Dalen, Dag Morten; Moen, Espen R & Riis, Christian (2010)

Regulering av fjernvarme

[Report]. Handelshøyskolen BI.

Dalen, Dag Morten & Moen, Espen R (2010)

Borgerlønn:en samfunnsøkonomisk analyse

[Report]. Handelshøyskolen BI.

Dalen, Dag Morten; Sorisio, Enrico & Strøm, S. (2009)

Choosing among Competing Blockbusters: Does the Identity of the Third‐party Payer Matter for Prescribing Doctors?

[Report]. Department of Economics. University of Oslo.

Dalen, Dag Morten & van Dijk, Theo H. (2009)

Imperfect enforcement of predatory pricing law

[Report]. Handelshøyskolen BI.

Dalen, Dag Morten (2009)

Private enforcement of predatory pricing law

[Academic lecture]. The Fourth International Conference on Competition and Regulation (CRESSE.

Dalen, Dag Morten (2009)

Reimbursement policy and physicians’ choice of biopharmaceuticals: The case of TNF-alpha inhibitors

[Academic lecture]. Helseøkonomikonferansen.

Dalen, Dag Morten (2009)

Sykehusenes legemiddelanbud. Konkurranse på hvilke vilkår?

[Article in business/trade/industry journal]. Samfunnsøkonomen

Dalen, Dag Morten & Grammeltvedt, Thor-Erik (2008)

The efficient public owner of a public utility: Too many to be true?

[Academic lecture]. EEA ESEM 2008.

Dalen, Dag Morten; Moen, Espen R. & Riis, Christian (2007)

Regulering av fjernvarme: Utredning for Olje- og energidepartementet

[Report]. Handelshøyskolen BI.

Dalen, Dag Morten; Strøm, Steinar & Haabeth, Tonje (2005)

Price regulation and generic competition in the pharmaceutical market

[Report]. Universitetet i Oslo.

Bjørnenak, Trond; Dalen, Dag Morten, Dalen, Dag Morten, Fehr, Nils-H. M. Von der, Olsen, Trond E. & Torsvik, Gaute (2005)

På like vilkår? Analyse av konkurranse mellom offentlige og private foretak

[Non-fiction book]. Konkurransetilsynet.

Dalen, Dag Morten; Lædre, Ola & Riis, Christian (2004)

Statlig styring av prosjektledelse

[Report]. Frischsenteret.

Dalen, Dag Morten & Strøm, S. (2004)

Pris- og avanseregulering for legemidler

[Report]. Frischsenteret.

Moen, Espen R.; Dalen, Dag Morten & Riis, Christian (2003)

Privat arbeidsformidling

[Report]. Handelshøyskolen BI.

Dalen, Dag Morten & Gomez-Lobo, Andres (2002)

Regulatory contracts and cost efficiency in the Norwegian Bus Industry: Do high-powered contracts really work?

[Report]. Handelshøyskolen BI.

Dalen, Dag Morten; Grytten, Jostein & Sørensen, Rune J. (2002)

Mer penger eller mer for pengene? Organisering og finansiering av norske sykehus

[Report]. Handelshøyskolen BI.

Dalen, Dag Morten (2002)

Kan konkurranse bidra til lavere legemiddelpriser?En evaluering av myndighetenes prisregulering

[Report]. Handelshøyskolen BI.

Dalen, Dag Morten; Dalen, Dag Morten & Olsen, Trond E. (2002)

Strategic regulation of a multi-national banking industry

[Report]. Institutt for foretaksøkonomi. Norges handelshøyskole.

This paper focuses on the consequences of cross-border banking and entry of multi-national bank (MNB) subsidiaries for banking supervision and regulation. When a MNB expands internationally with subsidiaries, the MNB operates under the legislation of several countries - both the home country and the host countries. Although these countries have agreed upon minimum standards and supervisory principles, such as in the EU directives or the Basle Accords, substantial degrees of freedom are still left to the national regulators. An interesting and important issue is whether the decentralized approach to regulation of MNBs creates inefficiencies and financial instability. Host country regulation of MNB subsidiaries creates cross-border externalities, where the supervisors and regulators in one country will be concerned with the standards in the home country and in other host countries. Our main result is that lack of international coordination of banking regulation works to lower capital adequacy requirements. In equilibrium, however, regulators respond by increasing the incentives to improve asset quality, making the probability of banking failure insensitive to the decentralized nature of banking regulation. Ownership of the MNB is shown to be of importance for the outcome of strategic banking regulation.

Sørensen, Rune J. & Dalen, Dag Morten (2001)

Eierskap og tilknytningsformer i offentlig sektor. En diskusjon av teori og empiriske resultater i internasjonal forskning

[Report]. Handelshøyskolen BI.

Akademisk grad
År Akademisk institusjon Grad
1996 University of Oslo Ph.D Dr. Polit.
1991 University of Oslo Master Cand. Oecon
Arbeidserfaring
År Arbeidsgiver Tittel
2019 - Present Vista Analyse AS Partner
2004 - Present BI Norwegian Business School Professor
2010 - 2018 BI Norwegian Business School Provost - Senior Vice President
2006 - 2010 BI Norwegian Business School Associate Dean, MSc in Business and Economics
2006 - 2007 BI Norwegian Business School Acting Head of Department
1998 - 2004 BI Norwegian Business School Associate Professor
1999 - 2000 Central Bank of Norway Senior advisor (part time)
1997 - 1998 Stortinget (The Norwegian Parliament) Advisor
1996 - 1998 SNF-Oslo Researcher
1992 - 1996 University of Oslo, Dept. of Economics Research fellow