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Imitative Pricing: the Importance of Neighborhood Effects in Physicians’ Consultation Prices

Benjamin Montmartin and Marcos Herrera-Gómez

No 123, Working Papers from Red Nacional de Investigadores en Economía (RedNIE)

Abstract: During the last 30 years in France, concerns about healthcare access have grown as physician fees have increased threefold. In this paper, we developed an innovative structural framework to provide new insights into free-billing physician pricing behavior. We test our theoretical framework using a unique geolocalized database covering more than 4,000 private practitioners in three specializations (ophthalmology, gynecology and pediatrics). Our main findings highlight a low price competition environment driven by local imitative pricing between physicians, which increases with competition density. This evidence in the context ofgrowing spatial concentration and an increasing share of free-billing physicians calls for new policies to limitadditional fees.

Keywords: Imitative pricing; Health care access; Local competition; Spatial eects. (search for similar items in EconPapers)
JEL-codes: C21 H51 I11 I18 (search for similar items in EconPapers)
Pages: 57 pages
Date: 2022-03
New Economics Papers: this item is included in nep-com, nep-eur, nep-hea and nep-ure
References: View references in EconPapers View complete reference list from CitEc

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