Bajari, Patrick L.; Hong, Han; Park, Minjung; Town, … - In: Quantitative Economics 8 (2017) 2, pp. 397-433
This paper proposes a method to estimate price sensitivity of economic agents exploiting discontinuity in nonlinear contracts. As an application, we study contracts between a managed care organization and hospitals for organ transplants. Exploiting donut holes in the reimbursement contracts, we...