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

Simple item page
dc.citation.firstpage965
dc.citation.issueNumber5
dc.citation.journalTitleThe Review of Economics and Statistics
dc.citation.lastpage982
dc.citation.volumeNumber97
dc.contributor.authorDai, Mian
dc.contributor.authorTang, Xun
dc.date.accessioned2017-05-12T17:10:13Z
dc.date.available2017-05-12T17:10:13Z
dc.date.issued2015
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.
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.
dc.identifier.doihttp://dx.doi.org/10.1162/REST_a_00473
dc.identifier.urihttps://hdl.handle.net/1911/94250
dc.language.isoeng
dc.publisherMIT Press
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.
dc.titleRegulation and Capacity Competition in Health Care: Evidence from U.S. Dialysis Markets
dc.typeJournal article
dc.type.dcmiText
dc.type.publicationpublisher version
Files
Original bundle
Now showing 1 - 1 of 1
Thumbnail Image
Name:
REGULATION-AND-CAPACITY.pdf
Size:
177.06 KB
Format:
Adobe Portable Document Format
Description:
Download
Collections
Faculty Publications
Economics Publications