Brekke, Kurt Richard; Siciliani, Luigi; Straume, Odd Rune - 2014
We study the effects of a hospital merger using a spatial competition framework with semialtruistic hospitals that … increase average quality in the market. If a merger leads to hospital closure, the resulting effect on quality is positive … (complements). A merger leads to higher average treatment cost efficiency and, if qualities are strategic substitutes, might also …