Product choice under price regulation: Evidence from out-patient dialysis markets
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.
Year of publication: |
2014
|
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Authors: | Dai, Mian |
Published in: |
International Journal of Industrial Organization. - Elsevier, ISSN 0167-7187. - Vol. 32.2014, C, p. 24-32
|
Publisher: |
Elsevier |
Subject: | Dialysis | Entry | Competition |
Saved in:
Online Resource
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