The Industrial Organization of Health Care Markets

64 Pages Posted: 17 Jan 2014 Last revised: 6 Feb 2023

See all articles by Martin Gaynor

Martin Gaynor

Carnegie Mellon University; National Bureau of Economic Research (NBER); Leverhulme Centre for Market and Public Organisation

Kate Ho

National Bureau of Economic Research (NBER); Princeton University - Department of Economics

Robert J. Town

National Bureau of Economic Research (NBER)

Date Written: January 2014

Abstract

The US health care sector is large and growing - health care spending in 2011 amounted to $2.7 trillion and 18% 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 US Patient Protection and Affordable Care Act.

Suggested Citation

Gaynor, Martin and Ho, Kate and Ho, Kate and Town, Robert J., The Industrial Organization of Health Care Markets (January 2014). NBER Working Paper No. w19800, Available at SSRN: https://ssrn.com/abstract=2380432

Martin Gaynor (Contact Author)

Carnegie Mellon University ( email )

H. John Heinz III School of Public Policy
and Management
Pittsburgh, PA 15213-3890
United States
412-268-7933 (Phone)
412-268-5338 (Fax)

National Bureau of Economic Research (NBER)

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Leverhulme Centre for Market and Public Organisation

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Kate Ho

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

Princeton University - Department of Economics ( email )

Princeton, NJ 08544-1021
United States

Robert J. Town

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

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