Abstract
This study examines the impacts of pharmaceutical price controls in a middle-income country setting, focusing on an implementation of pharmaceutical price ceilings in India. In the short-term, it finds that price controls led to declining prices for directly-impacted and competing products and increased market share for high-quality products. However, after price controls were implemented, low-priced firms were more likely to exit price-controlled markets and sales of price-controlled products declined in markets with stronger price controls. The benefits of the legislation were largest for quality-sensitive consumers, while the downsides most affected price-sensitive consumers.