"Pharmaceutical Followers," presented by Paul B. Ellickson, associate professor of Economics and Marketing in the Simon School of Business at the University of Rochester. We estimate a model of drug demand and supply that incorporates insurance, advertising, and competition between branded and generic drugs within and across therapeutic classes. We use data on ulcer and re ux drugs from 1991 to 2010. Our simulations show generics and \me- too" drugs each increased welfare more than $100 million in 2010. However, insurance payments rose by over $7 billion due to me-too drugs and fell by over $1 billion due to generics. For more information contact Emily Wang, 545-5741.