Competition and Crowding-Out among Public, Non-Profit, and For-Profit Organizations: Evidence from Outpatient Substance Abuse Treatment
36 Pages Posted: 7 May 2007
Date Written: May 4, 2007
Abstract
U.S. markets for outpatient substance abuse treatment (OSAT) include clinics that are private for-profit, private non-profit, and public (i.e., government-run). We study the market structure of OSAT using recently-developed methods from the empirical industrial organization literature on equilibrium market structure in differentiated product markets. These methods allow us to describe OSAT clinics as heterogeneous in their objectives, their responses to exogenous market characteristics, and their responses to one another. We find that the presence of a public clinic in a market reduces the probability that a private clinic will also participate in the market, which is consistent with crowding-out between public and private provision of OSAT. Crowding out appears to be more prevalent in markets with larger white populations.
Keywords: discrete games, multiple equilibria, structural estimation, healthcare markets, substance abuse treatment, crowding out
JEL Classification: C35, C72, H4, I1, L1, L3
Suggested Citation: Suggested Citation
Do you have negative results from your research you’d like to share?
Recommended Papers
-
Competition in Health Care Markets
By Martin Gaynor and Robert J. Town
-
Antitrust and Competition in Health Care Markets
By Martin Gaynor and William B. Vogt
-
Antitrust and Competition in Health Care Markets
By Martin Gaynor and William B. Vogt
-
Change, Consolidation, and Competition in Health Care Markets
By Martin Gaynor and Deborah Haas-wilson
-
Change, Consolidation, and Competition in Health Care Markets
By Martin Gaynor and Deborah Haas-wilson
-
Are Invisible Hands Good Hands? Moral Hazard, Competition, and the 2nd Best in Health Care Markets
By Martin Gaynor, Deborah Haas-wilson, ...
-
By Martin Gaynor, Deborah Haas-wilson, ...
-
By Martin Gaynor and William B. Vogt
-
By Martin Gaynor and William B. Vogt