Movies, Stigma and Choice: Evidence from the Pharmaceutical Industry

Abstract

Do movies aid in reducing stigma, increasing healthcare choices offered by firms? We examine this question in the context of Indian pharmaceutical markets, using an exogenous shock to the market due to the release of a Bollywood blockbuster movie - My Name is Khan (MNIK) where the protagonist, superstar Shahrukh Khan, suffers from Asperger’s Syndrome (AS). Using a difference-in-differences design, we find evidence of a positive and statistically significant effect of MNIK on product differentiation and choices in the market for antipsychotic medicines used to clinically treat AS. Results are consistent using alternative and synthetic controls, along with other robustness checks. Further we find that physician prescriptions facilitate the positive change in medicine choices offered by firms with the release of MNIK. Our findings suggest potential welfare effects of ‘edutainment’ through movies enhancing choices in pharmaceutical and healthcare markets characterized by sticky demand. Implications for global health and public policy are discussed.