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This paper specifies and estimates a dynamic model of consumer preferences for new durable goods with persistent heterogeneous consumer tastes, rational expectations about future products and repeat purchases over time. Most new consumer durable goods, particularly consumer electronics, are characterized by relatively high initial prices followed by rapid(More)
In recent years, many hospitals have merged, in part to gain bargaining leverage with managed care organizations (MCOs). We investigate the price impact of hospital mergers by formulating and estimating an equilibrium bargaining model between hospital systems and managed care health insurers over prices for inpatient services. We estimate the parameters of(More)
We seek to determine the presence and causes of network externalities for the automated clearinghouse (ACH) electronic payments system, using a monthly panel data set on individual bank adoption of ACH. We construct a model of ACH usage that shows how to separately identify network externalities from technological advancement and peer-group effects. We find(More)
We seek to understand the relationship between employer decisions regarding which health plans firms choose to offer to their employees and the performance of those plans. We measure performance using data from the Health Plan Employer Data Information Set (HEDIS) and the Consumer Assessment of Health Plan Survey (CAHPS). We use a unique data set that lists(More)
We present a dynamic model of the hospital industry in which nonprofit and for-profit hospitals coexist and compete and are differentiated by their objective functions, investment technologies, and taxation rates. In our model, patients differ by income and type of insurance coverage, and choose admission to their preferred hospital, while hospitals choose(More)
Acknowledgments: We are grateful to Tom Cragg and Bruce Bradley for providing the data for this study. We acknowledge helpful comments from anonymous referees, and seminar participants at numerous institutions. We also appreciate editorial assistance from Anita Todd and programming assistance from Joe Vasey. An earlier version of this paper was distributed(More)
Many government policies either target the underlying supply infrastructure or have indirect effects on market structure. In this paper we seek to understand the impact of the Critical Access Hospital (CAH) program on the U.S. rural hospital infrastructure and societal welfare. This program provides generous reimbursement to hospitals in exchange for size(More)
I develop a structural model of newspaper markets to analyze the effects of ownership consolidation. In the model, firms choose both price and quality including the amount of non-advertising space, the number of reporters, and the number of opinion section staff. I estimate the model using a new data set on newspaper prices and characteristics. I then(More)