Evolving Measures of Provider Market Power

David Dranove and Christopher Ody ()
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Christopher Ody: Kellogg School of Management, Northwestern University

American Journal of Health Economics, 2016, vol. 2, issue 2, 145-160

Abstract: Many researchers assess the impact of provider market structure and market power on outcomes such as price. These studies use a variety of measures of structure and power, ranging from ad hoc measures often based on census boundaries to structural measures derived from economic models of provider-payer bargaining. We explain the shortcomings of ad hoc measures, and, through a series of “horse races” show that one leading structural measure, the “willingness to pay,” is a consistently better predictor of prices.

Keywords: competition; market structure; market share (search for similar items in EconPapers)
JEL-codes: C51 I11 L11 L13 (search for similar items in EconPapers)
Date: 2016
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Citations: View citations in EconPapers (8)

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