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Market Structure and Competition in the Health-care Industry: Results from a Transition Economy

Martin Lábaj (), Alzbeta Siskovicova, Barbora Skalicanova, Peter Silanic, Christoph Weiss () and Biliana Yontcheva

No 10, Department of Economic Policy Working Paper Series from Department of Economic Policy, Faculty of National Economy, University of Economics in Bratislava

Abstract: The present paper provides first empirical evidence on the relationship between market size and the number of fi rms in the health-care industry for a transition economy. We estimate market size thresholds required to support diff erent numbers of suppliers (fi rms) for three occupations in the health-care industry in a large number of distinct geographic markets in Slovakia, taking into account the spatial interaction between local markets. The empirical analysis is carried out for three time periods (1995, 2001 and 2010) characterizing diff erent stages of the transition process. Our results suggest that the relationship between market size and the number of fi rms diff ers both across industries, and across periods. Furthermore, we fi nd evidence for correlation in entry decisions across administrative borders.

Keywords: entry thresholds; competition; Slovakia; health-care industry (search for similar items in EconPapers)
JEL-codes: L22 D22 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-com, nep-hea and nep-ind
Date: 2015-12-10
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