Evolving Measures of Provider Market Power, American Journal of Health Economics
Many researchers assess the impact of provider market structure and market power on outcomes such as price. These studies use a variety of measures of structure and power, ranging from ad hoc measures often based on census boundaries to structural measures derived from economic models of provider-payer bargaining. We explain the shortcomings of ad hoc measures, and, through a series of “horse races” show that one leading structural measure, the “Willingness to Pay,” is a consistently better predictor of prices.
David Dranove, Christopher Ody
Dranove, David, and Christopher Ody. 2015. Evolving Measures of Provider Market Power. American Journal of Health Economics. 2(2): 145-160.LINK