Strategic behaviour and decision making in competitive hospital markets: an experimental investigation.

Johann Han, Nadja Kairies-Schwarz, Markus Vomhof

Abstract read

In one paragraph

Article in International journal of health economics and management, 2024. The graph could read no effect estimate from its abstract, so it casts no vote on the map. Not yet cited in PubMed.

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0citing papers in PubMed

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1 · What the graph read from it

What it found

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2 · The registry

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4 · The record

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5 · Who and what money

Authors and funding

3 authors.

Johann HanFaculty of Economics and Business Administration, University of Duisburg-Essen, Essen, Germany.

Nadja Kairies-SchwarzInstitute for Health Services Research and Health Economics, Centre for Health and Society, Medical Faculty and University Hospital Düsseldorf, Heinrich-Heine-University Düsseldorf, Düsseldorf, Germany. nadja.kairies-schwarz@uni-duesseldorf.de.

Markus VomhofInstitute for Health Services Research and Health Economics, Centre for Health and Society, Medical Faculty and University Hospital Düsseldorf, Heinrich-Heine-University Düsseldorf, Düsseldorf, Germany.

Funding

Bundesministerium für Bildung und Forschung 01 EH1602A

6 · The paper itself

Abstract

We investigate quality provision and the occurrence of strategic behaviour in competitive hospital markets where providers are assumed to be semi-altruistic towards patients. For this, we employ a laboratory experiment with a hospital market framing. Subjects decide on the quality levels for one of three competing hospitals respectively. We vary the organizational aspect of whether quality decisions within hospitals are made by individuals or teams. Realized monetary patient benefits go to real patients outside the lab. In both settings, we find that degrees of cooperation quickly converge towards negative values, implying absence of collusion and patient centred or competitive quality choices. Moreover, hospitals treat quality as a strategic complement and adjust their quality choice in the same direction as their competitors. The response magnitude for team markets is weaker; this is driven by non-cooperative or altruistic teams, which tend to set levels of quality that are strategically independent.

Indexed as

Decision MakingEconomic CompetitionAdultAltruismCooperative BehaviorDecision Making, OrganizationalFemaleHospitalsHumansMaleQuality of Health CareAltruismHospital marketsLaboratory experimentQuality competitionTeam decisions

Identifiers

PMID38489122

DOI10.1007/s10754-024-09366-3

PMCPMC11445323

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Read under generation 80e0d062 · epoch 390. Bibliography from PubMed, PubMed Central and OpenAlex; grants from NIH RePORTER; trial links from ClinicalTrials.gov; estimates, votes and beliefs from the OpenQuestion graph.