The Industrial Organization of Health-Care Markets
Robert J. Town
Journal of Economic Literature
no. 2, June 2015
The U.S. health-care sector is large and growing—health-care spending in 2011 amounted to $2.7 trillion and 18 percent of GDP. Approximately half of health-care output is allocated via markets. In this paper, we analyze the industrial organization literature on health-care markets, focusing on the impact of competition on price, quality, and treatment decisions for health-care providers and health insurers. We conclude with a discussion of research opportunities for industrial organization economists, including opportunities created by the U.S. Patient Protection and Affordable Care Act. (JEL J15, J24, J71, J81, K31)
Gaynor, Martin, Kate Ho, and Robert J. Town.
"The Industrial Organization of Health-Care Markets."
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