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

• Autores: Mian Dai
• Localización: International journal of industrial organization, ISSN 0167-7187, Vol. 32, Nº. 1, 2014, págs. 24-32
• Idioma: inglés
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• Resumen

  • 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.