This paper theoretically and empirically examines the role of information in the practice of pharmaceutical detailing (promotional interactions between drug representatives and physicians). We start with a theoretical framework in which pharmaceutical firms target detailing visits to physicians...

This paper investigates the degree to which products liability related costs explain differences in pharmaceutical prices between the United States and Canada.

We study the effect of price caps on the provision of costly effort by pharmaceutical firms using variation in drug discounts generated by a price regulation program that allows eligible hospitals to purchase outpatient drugs at steep discounts. These discounts directly affect drug...

In this study we examine the effects of transferring physicians from a compensation system based on salary to a profit-sharing system. Consistent with theory, we find that the change has a large and significant effect on the quantity of services provided. In addition, we find a selection effect,...

Organizational change has become the norm rather than the exception among U.S. hospitals. Downsizing, service diversification, and affiliation with healthcare systems are but a few notable examples. In this paper, we review the rationale and consequences of organizational change in U.S....

This paper theoretically and empirically examines the role of information in the practice of pharmaceutical detailing (promotional interactions between drug representatives and physicians). We start with a theoretical framework in which pharmaceutical firms target detailing visits to physicians...

We develop a model of imperfectly competitive insurers that compete with HMOs for consumers who have private information about their health status. We illustrate two conflicting effects of increasing HMO activity on conventional insurance premiums. We term these effects market discipline -- HMO...

Advances in structural demand estimation have substantially improved economists' ability to forecast the impact of mergers. However, these models rely on extensive assumptions about consumer choice and firm objectives, and ultimately observational methods are needed to test their validity....

The theory of cost-shifting posits that nonprofit hospitals respond to negative financial shocks by raising prices for privately insured patients. We examine how hospitals responded to the sharp reductions in their endowments caused by the 2008 stock market collapse. We find that the average...

Wer nur an die Marktwirtschaft glaubt, ist abergläubisch, stellte der katholische Theologe Hans Küng vor einigen Jahren in einem Beitrag „Ökonomie und Theologie“ für Studenten der Wirtschaftswissenschaften fest. Soziale Marktwirtschaft, so ließe sich fortfahren, schützt vor diesem...