Journal article
Product choice under price regulation: Evidence from out-patient dialysis markets
International journal of industrial organization, v 32(1)
Jan 2014
Featured in Collection : UN Sustainable Development Goals @ Drexel
Abstract
Using a dataset of dialysis facilities operating in more than 1000 U.S. counties in 2007, I examine the product choice of two types of firms: multiproduct dialysis facilities and single product dialysis facilities. I simulate the effect of a Medicare policy proposal in 2008 which reduces the regulated price of a common product that is produced by both types. I find that the policy decreases the number of single product dialysis facilities but increases the number of multiproduct facilities, holding patient behavior and provider cost structure constant. I also find strong evidence for market segmentation between single product and multiproduct dialysis facilities.
•Estimate a model of competition between multi- and single product dialysis providers.•Investigate a counterfactual policy that decreases the regulated price of a common product offered by both providers.•Though the policy decreases the total number of dialysis providers, it increases the number of multiproduct providers.
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Details
- Title
- Product choice under price regulation: Evidence from out-patient dialysis markets
- Creators
- Mian Dai - Drexel University
- Publication Details
- International journal of industrial organization, v 32(1)
- Publisher
- Elsevier
- Resource Type
- Journal article
- Language
- English
- Academic Unit
- Economics (School of Economics)
- Web of Science ID
- WOS:000331511700003
- Scopus ID
- 2-s2.0-84889660083
- Other Identifier
- 991019168035804721
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- Web of Science research areas
- Economics