Logo Logo

Do Report Cards Tell Consumers Anything They Don't Already Know? The Case of Medicare HMOs, RAND Journal of Economics

Abstract

Estimated responses to report cards may reflect learning about quality that would have occurred in their absence such as market-based learning. Using panel data on Medicare HMOs, we examine the relationship between enrollment and quality before and after report cards were mailed to 40 million Medicare beneficiaries in 1999 and 2000. We find consumers learn from both public report cards and market-based sources, with the latter having a larger impact. Consumers are especially sensitive to both sources of information when the variance in HMO quality is greater. The effect of report cards is driven by beneficiaries responses to consumer satisfaction scores.

Type

Article

Author(s)

Leemore S. Dafny, David Dranove

Date Published

2008

Citations

Dafny, S. Leemore, and David Dranove. 2008. Do Report Cards Tell Consumers Anything They Don't Already Know? The Case of Medicare HMOs. RAND Journal of Economics. 39(3): 790-821.

KELLOGG INSIGHT

Explore leading research and ideas

Find articles, podcast episodes, and videos that spark ideas in lifelong learners, and inspire those looking to advance in their careers.
learn more

COURSE CATALOG

Review Courses & Schedules

Access information about specific courses and their schedules by viewing the interactive course scheduler tool.
LEARN MORE

DEGREE PROGRAMS

Discover the path to your goals

Whether you choose our Full-Time, Part-Time or Executive MBA program, you’ll enjoy the same unparalleled education, exceptional faculty and distinctive culture.
learn more