Pricing behavior in long term care markets: evidence from provider-level data for home help services

Remco Eijkel (), Mark Kattenberg and Ab Torre
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Remco Eijkel: SEO Amsterdam Economics
Mark Kattenberg: CPB Netherlands Bureau for Economic Policy Analysis
Ab Torre: The Netherlands Institute for Social Research

International Journal of Health Economics and Management, 2023, vol. 23, issue 1, No 3, 59-83

Abstract: Abstract Exploiting a rich data set on the Dutch market for home help services, we find that larger providers obtain a higher price than do small providers. However, compared to other studies on market power in care markets this price difference is considered small to moderate. Our identification strategy relies on the exogenous variation in market shares in January’07, the very first month after home help was decentralized to municipalities. Zooming in on our main outcome, we obtain that the small but significant effect of market size on price is merely driven by the pricing behavior of for-profit providers.

Keywords: Long-term care; Home help; Pricing behavior; Competition; For-profits; Non-for-profits (search for similar items in EconPapers)
JEL-codes: I11 L11 L33 (search for similar items in EconPapers)
Date: 2023
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DOI: 10.1007/s10754-022-09334-9

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