Pricing <TOGGLE>in vitro</TOGGLE> fertilization procedures
This paper examines the economics of pricing practices at artificial reproductive clinics, which have introduced money-back guarantees (MBGs) for in vitro fertilization. We identify incentives for clinics to offer MBGs and evaluate the impact on couples' choices and on social welfare. Introducing MBGs allows a clinic to (i) segment couples simultaneously on their relative fertility and on risk preferences; (ii) offer quantity discounts to relatively infertile couples; and (iii) offer some risk-sharing to couples for this costly procedure, whose outcome is uncertain. Our results also show how the addition of MBGs can affect the overall social welfare. Copyright © 2009 John Wiley & Sons, Ltd.
Year of publication: |
2009
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Authors: | Dukes, Anthony J. ; Tyagi, Rajeev K. |
Published in: |
Health Economics. - John Wiley & Sons, Ltd., ISSN 1057-9230. - Vol. 18.2009, 12, p. 1461-1480
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Publisher: |
John Wiley & Sons, Ltd. |
Saved in:
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