Regulation and Capacity Competition in Health Care: Evidence from U.S. Dialysis Markets

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dc.citation.firstpage965en_US
dc.citation.issueNumber5en_US
dc.citation.journalTitleThe Review of Economics and Statisticsen_US
dc.citation.lastpage982en_US
dc.citation.volumeNumber97en_US
dc.contributor.authorDai, Mianen_US
dc.contributor.authorTang, Xunen_US
dc.date.accessioned2017-05-12T17:10:13Zen_US
dc.date.available2017-05-12T17:10:13Zen_US
dc.date.issued2015en_US
dc.description.abstractThis paper studies entry and capacity decisions by dialysis providers in the United States. We estimate a structural model where providers make continuous strategic choices of capacity based on their private information about own costs and knowledge of the distribution of competitors’ private information. We evaluate the impact on the market structure and providers’ profits under counterfactual regulatory policies that increase the costs or reduce the payment per unit of capacity. We find that these policies reduce the market capacity as measured by the number of dialysis stations. However, the downward-sloping reaction curve shields some providers from negative profit shocks in certain markets. The paper also has a methodological contribution in that it proposes new estimators for Bayesian games with continuous actions.en_US
dc.identifier.citationDai, Mian and Tang, Xun. "Regulation and Capacity Competition in Health Care: Evidence from U.S. Dialysis Markets." <i>The Review of Economics and Statistics,</i> 97, no. 5 (2015) MIT Press: 965-982. http://dx.doi.org/10.1162/REST_a_00473.en_US
dc.identifier.doihttp://dx.doi.org/10.1162/REST_a_00473en_US
dc.identifier.urihttps://hdl.handle.net/1911/94250en_US
dc.language.isoengen_US
dc.publisherMIT Pressen_US
dc.rightsArticle is made available in accordance with the publisher's policy and may be subject to US copyright law. Please refer to the publisher's site for terms of use.en_US
dc.titleRegulation and Capacity Competition in Health Care: Evidence from U.S. Dialysis Marketsen_US
dc.typeJournal articleen_US
dc.type.dcmiTexten_US
dc.type.publicationpublisher versionen_US
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