two sources of inertia, inattention to plan choice and switching costs. We develop a panel data model with separate … attention and choice stages, linked by heterogeneity in acuity, i.e., the ability and willingness to make diligent choices …. Using data from Medicare Part D, we find that inattention is an important source of inertia but switching costs also play a …

the effects of medical insurance and competition in the guise of free choice of physician, including observability of … consult more often and physicians overtreat more often than in the baseline condition. Competition decreases overtreatment … compared to the baseline and patients therefore consult more often. When the two institutions are combined, competition is …

stylized way, we study the effects of medical insurance and competition in the guise of free choice of physician. Medical … physicians overtreat more often than in the baseline condition. Competition decreases overtreatment compared to the baseline and … patients therefore consult more often. When the two institutions are combined, competition is found to partially offset the …