Product choice under price regulation: Evidence from out-patient dialysis markets

Mian Dai

International Journal of Industrial Organization, 2014, vol. 32, issue C, 24-32

Abstract: 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.

Keywords: Dialysis; Entry; Competition (search for similar items in EconPapers)
JEL-codes: I11 L13 (search for similar items in EconPapers)
Date: 2014
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:indorg:v:32:y:2014:i:c:p:24-32

DOI: 10.1016/j.ijindorg.2013.10.006

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