scholarly journals Multimarket Contact in the Hospital Industry

2018 ◽  
Vol 10 (3) ◽  
pp. 361-387 ◽  
Author(s):  
Matt Schmitt
Keyword(s):  
United States ◽  
The United States ◽  
Market Concentration ◽  
Hospital Industry ◽  
Multimarket Contact ◽  
Multiple Markets ◽  
Multihospital Systems ◽  
Market Consolidation

Hospitals in the United States increasingly belong to multihospital systems that operate in numerous geographic markets. A large literature in management and economics suggests that competition between firms may be softened as a result of multimarket contact—i.e., firms competing with one another in multiple markets simultaneously. Exploiting plausibly exogenous variation in multimarket contact generated by out-of-market consolidation, I find that increases in multimarket contact over the 2000–2010 period led to higher hospital prices. These results suggest that continued hospital consolidation may produce higher prices even if that consolidation only minimally affects within-market concentration. (JEL G34, G38, I11, I18, K21, L41)

scholarly journals Firm Size and Employment during the Pandemic

2021 ◽  
Vol 7 ◽  
pp. 237802312199260
Author(s):  
Ken-Hou Lin ◽  
Carolina Aragão ◽  
Guillermo Dominguez
Keyword(s):  
United States ◽  
Labor Market ◽  
Firm Size ◽  
The United States ◽  
Market Concentration ◽  
Job Security ◽  
Wage Premium ◽  
Small Enterprises ◽  
Policy Responses ◽  
Industrial Context

Previous studies have established that firm size is associated with a wage premium, but the wage premium has declined in recent decades. The authors examine the risk for unemployment by firm size during the initial outbreak of coronavirus disease 2019 in the United States. Using both yearly and state-month variation, the authors find greater excess unemployment among workers in small enterprises than among those in larger firms. The gaps cannot be entirely attributed to the sorting of workers or to industrial context. The firm size advantage is most pronounced in sectors with high remotability but reverses in the sectors most affected by the pandemic. Overall, these findings suggest that firm size is linked to greater job security and that the pandemic may have accelerated prior trends regarding product and labor market concentration. They also point out that the initial policy responses did not provide sufficient protection for workers in small and medium-sized businesses.

scholarly journals Ten Facts on Declining Business Dynamism and Lessons from Endogenous Growth Theory

2021 ◽  
Vol 13 (1) ◽  
pp. 257-298
Author(s):  
Ufuk Akcigit ◽  
Sina T. Ates
Keyword(s):  
United States ◽  
Endogenous Growth ◽  
Knowledge Diffusion ◽  
The United States ◽  
Market Concentration ◽  
Growth Theory ◽  
Composition Effect ◽  
Incentive Effect ◽  
Endogenous Growth Theory ◽  
Theoretical Predictions

In this paper, we review the literature on declining business dynamism and its implications in the United States and propose a unifying theory to analyze the symptoms and the potential causes of this decline. We first highlight 10 pronounced stylized facts related to declining business dynamism documented in the literature and discuss some of the existing attempts to explain them. We then describe a theoretical framework of endogenous markups, innovation, and competition that can potentially speak to all of these facts jointly. We next explore some theoretical predictions of this framework, which are shaped by two interacting forces: a composition effect that determines the market concentration and an incentive effect that determines how firms respond to a given concentration in the economy. The results highlight that a decline in knowledge diffusion between frontier and laggard firms could be a significant driver of empirical trends observed in the data. This study emphasizes the potential of growth theory for the analysis of factors behind declining business dynamism and the need for further investigation in this direction. (JEL D33, E25, J24, L13, O33, O34)

No Significant Association between Anesthesia Group Concentration and Private Insurer Payments in the United States

2015 ◽  
Vol 123 (3) ◽  
pp. 507-514 ◽  
Author(s):  
Eric C. Sun ◽  
Franklin Dexter ◽  
Alex Macario ◽  
Thomas R. Miller ◽  
Laurence C. Baker
Keyword(s):  
United States ◽  
Claims Data ◽  
The United States ◽  
Market Concentration ◽  
Physician Services ◽  
Difference In Differences ◽  
Private Insurer ◽  
Anesthesia Group ◽  
Medicare Claims Data ◽  
Group Concentration

Abstract Background: Markets for physician services are becoming increasingly concentrated, with many areas being dominated by a few groups. Antitrust authorities are concerned that increasing concentration will lead to inappropriately high payments for physician services from private insurers. The authors examined the association between market concentration and private insurer payments for anesthesia services. Methods: The authors obtained data on average payments from private insurers for five commonly used anesthesia Current Procedure Terminology codes for physicians located in 229 counties in the United States between 2002 and 2010. The authors calculated a measure of market concentration (the Herfindahl–Hirschman Index [HHI]) for anesthesiologists in each county using Medicare claims data. The authors then estimated the association between market concentration and private insurer payments using a difference-in-differences approach to minimize confounding. Results: Private insurer payments to anesthesiologists in more concentrated markets were not significantly different from payments in less concentrated markets. Compared with the 25% of counties with the least concentration (counties with an HHI in the 0th to 25th percentile), payments in counties in the 25th to 50th percentile of HHI were approximately 0.51% less (95% CI, −2.3 to 1.3%, P = 0.95), whereas payments in counties in the 50th to 75th percentile of HHI were approximately 2.8% less (95% CI, −6.7 to 1.4%, P = 0.41) and payments in counties in the 75th to 100th percentile were approximately 3.1% less (95% CI, −8.1 to 1.2%, P = 0.32). Conclusion: Increasing market concentration of anesthesia groups is not associated with significantly greater payments from private insurers.

scholarly journals An Examination of Audit Fees for Initial Audit Engagements after the H3C Inspection in French Context

2019 ◽  
Vol 11 (12) ◽  
pp. 41
Author(s):  
Jamel Azibi ◽  
Catherine Grima ◽  
Hubert Tondeur
Keyword(s):  
United States ◽  
Audit Fees ◽  
The United States ◽  
Market Concentration ◽  
Main Hypothesis ◽  
Empirical Results ◽  
Audit Market

This paper examines the audit fees for initial audit engagements after the H3C inspection in French context through 2008 to 2015. According to the theory, we suppose that audit fees increase after the start of the H3C inspection program. To test our main hypothesis, we use the methodology of the (Desir, Casterella, & Kokina, 2013) and (Huang, Raghunandan, & Rama, 2009) reported on the United States context. Our empirical results demonstrate that the audit fees in French context for the initial audit engagement decreased after the start of the H3C inspection program. Contrary to our prediction, the massive disciplinary sanction associated to the audit fees and the less level of the audit market concentration in France, are two determinants that explain the decrease of the audit fees in this country.

A Giant Problem: The Influence of the Chicago School on Australian Competition Law, Economic Dynamism and Inequality

2019 ◽  
Vol 47 (4) ◽  
pp. 696-714 ◽  
Author(s):  
Adam Triggs ◽  
Andrew Leigh
Keyword(s):  
United States ◽  
Market Power ◽  
Competition Law ◽  
Chicago School ◽  
The United States ◽  
Market Concentration ◽  
Vertical Restraints ◽  
Barriers To Entry ◽  
Competitive Process ◽  
Growing Body

Australia has a competition problem: there is not enough of it. Our industries are concentrated. Our markets show signs of weak competition. The way Australia’s courts, parliamentarians and regulators think about competition is partly to blame. Although it has been less influential in Australia than in the United States, the Chicago School’s views on competition have shaped our laws, policies and enforcement practices. The Chicago School views market concentration as a virtue more than a vice. The School contended that barriers to entry are negligible, market power is temporary, most mergers are good, vertical restraints and predatory pricing are either benign or efficient. The growing body of research and experience, however, shows that the Chicago School’s faith in the ability of markets to self-correct and deliver competitive outcomes was misplaced. There is a strong progressive case for repositioning how we think about competition. Focusing more on the competitive process, the structure of markets and the incentives those structures create for firms will play an important role in reducing inequality.

Multihospital systems in the United States: A geographical overview

1981 ◽  
Vol 15 (3) ◽  
pp. 353-359
Author(s):  
Ross Mullner ◽  
Calvin S. Byre ◽  
Joseph D. Kubal
Keyword(s):  
United States ◽  
The United States ◽  
Multihospital Systems

Labor Monopsony in the United States

2021 ◽  
pp. 11-29
Author(s):  
Eric A. Posner
Keyword(s):  
United States ◽  
Economic Growth ◽  
Labor Market ◽  
Labor Markets ◽  
Market Power ◽  
Empirical Work ◽  
The United States ◽  
Market Concentration ◽  
Wide Range ◽  
Low Wages

Most labor markets are monopsonistic, meaning that employers have market power and can suppress wages below the competitive rate. Among the various sources of market power is concentration: the usually small number of employers who compete to offer a type of job to workers. At one time, economists assumed that labor markets were competitive, and largely ignored the phenomenon of labor market concentration. Recent empirical work, relying on newly available databases, has established that labor market concentration is a serious problem in the United States and may account for a wide range of pathologies, including low wages, inequality, and stagnant economic growth.

Washington will lag behind EU on tech antitrust action

2017 ◽  
Keyword(s):  
United States ◽  
Market Power ◽  
Emerging Economies ◽  
The United States ◽  
Market Concentration ◽  
Content Type ◽  
Consumer Services ◽  
The Eu ◽  
Internet Companies

Subject Tech antitrust trends. Significance The European Commission’s imposition of a 2.4-billion-euro fine on Google on June 27 adds to claims that the EU authorities have a discriminatory approach towards US tech firms. However, there is growing concern in the United States as well as Europe that the domination of the tech sector by a few giant firms is stifling competition and the market. Impacts Tech companies will face further challenges to their market power from antitrust authorities in both developed and emerging economies. US debates against market concentration will go beyond tech and include broadband, aviation and other consumer services. Even then, any anti-trust action will be fiercely contested by the incumbent internet companies.

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