Preliminary. Please do not cite. (2008)
There are many markets in which a seller simultaneously diagnoses a customer’s needs and recommends a product or service to meet them. Customers have limited information on which to judge the...
A Theory of Utilization Review (2003)
Dranove, David, Spier, Kathryn E.
Through utilization review (UR), managed care organizations (MCOs) monitor and alter physician treatment decisions. We show that the value of UR depends on physician incentives. Not surprisingly,...
A Theory of Utilization Review (2003)
Dranove, David, Spier, Kathryn E.
Through utilization review (UR), managed care organizations (MCOs) monitor and alter physician treatment decisions. We show that the value of UR depends on physician incentives. Not surprisingly,...
A Theory of Utilization Review (2003)
Dranove, David, Spier, Kathryn E.
Through utilization review (UR), managed care organizations (MCOs) monitor and alter physician treatment decisions. We show that the value of UR depends on physician incentives. Not surprisingly,...
A Theory of Utilization Review (2003)
Dranove, David, Spier, Kathryn E.
Through utilization review (UR), managed care organizations (MCOs) monitor and alter physician treatment decisions. We show that the value of UR depends on physician incentives. Not surprisingly,...
The DVD vs. DIVX Standard War: Empirical Evidence of Vaporware (2000)
In this paper, we empirically measure the effect of the DIVX preannouncement in the DVD market. We do this by measuring the effect of potential (incompatible) competition on a network undergoing...
The DVD vs. DIVX Standard War: Empirical Evidence of Vaporware (2000)
In this paper, we empirically measure the effect of the DIVX preannouncement in the DVD market. We do this by measuring the effect of potential (incompatible) competition on a network undergoing...
"For supplemental use in managerial economics-6N:213
THE VERTICAL CHAIN OF RESEARCH AND DEVELOPMENT IN THE PHARMACEUTICAL INDUSTRY (1995)
WARD, MICHAEL R., DRANOVE, DAVID
This paper examines the relationship between basic and applied pharmaceutical research. We focus on three stages of research and development (R&D): government funded basic research; publication in...
DEMAND INDUCEMENT AND THE PHYSICIAN/PATIENT RELATIONSHIP (1988)
The physician/patient relationship is a paradigm for any expert/client relationship. The physician both diagnoses the patient's illness and recommends a treatment. This dual role gives the...
Thesis (Ph. D.)--Stanford University, 1983.
Submitted to the Graduate School of Business.
Is More Information Better? The Effects of "Report Cards" on Health Care Providers
David Dranove, Daniel Kessler, Mark McClellan, Mark Satterthwaite
Health care report cards' public disclosure of patient health outcomes at the level of the individual physician or hospital or bothmay address important informational asymmetries in markets for...
Do Report Cards Tell Consumers Anything They Don't Already Know? The Case of Medicare HMOs
The use of government-mandated report cards to diminish uncertainty about the quality of products and services is widespread. However, report cards will have little effect if they simply confirm...
Regulatory Exploitation and the Market for Corporate Controls
This paper investigates whether managers who fail to exploit regulatory loopholes are vulnerable to replacement. We use the U.S. hospital industry in 1985-1996 as a case study. A 1988 change in...
The industrial organization of health care markets
Dranove, David, Satterthwaite, Mark A., A. J. Culyer, J. P. Newhouse
Health care markets fail to satisfy many requirements for perfect competition, including large numbers of consumers and firms, zero search costs, and marketability of all goods and services. Over...
Patient Admission Patterns and Acquisitions of "Feeder" Hospitals
Sayaka Nakamura, Cory Capps, David Dranove
"Acquiring outlying community hospitals is one approach commonly used by large tertiary care hospitals to increase referrals. Sophisticated acquirers may also seek to selectively increase referrals...
The U.S. healthcare system is in critical condition--but this should come as a surprise to no one. Yet until now the solutions proposed have been unworkable, pie-in-the-sky plans that have had little...
Differentiation and Competition in HMO Markets
David Dranove, Anne Gron, Michael J. Mazzeo
This paper examines how differentiation among Health Maintenance Organizations (HMOs) affects local market competition. Most markets for HMOs appear sufficiently unconcentrated; however, differences...
The Dvd-vs.-Divx Standard War: Empirical Evidence of Network Effects and Preannouncement Effects
We test empirically for network effects and preannouncement effects in the DVD market. We do this by measuring the effect of potential (incompatible) competition on a network undergoing growth. We...
Specialization, Option Demand, and the Pricing of Medical Specialists
David Dranove, William D. White
This paper discusses the supplier power of medical specialists. We argue that a combination of factors, including the structure of health care delivery, reimbursement systems, the presence of option...
Emerging issues in the antitrust definition of healthcare markets
David Dranove, William D. White
Managed care has shifted purchasing decisions from patients towards payers. While this shift has been associated with increased price competition in provider markets, we believe that it may enhance...
The DVD vs. DIVX Standard War: Empirical Evidence of Vaporware
In this paper, we empirically measure the effect of the DIVX preannouncement in the DVD market. We do this by measuring the effect of potential (incompatible) competition on a network undergoing...
The DVD vs. DIVX Standard War: Empirical Evidence of Vaporware
In this paper, we empirically measure the effect of the DIVX preannouncement in the DVD market. We do this by measuring the effect of potential (incompatible) competition on a network undergoing...
Competition and Market Power in Option Demand Markets.
Capps, Cory, Dranove, David, Satterthwaite, Mark
We call markets in which intermediaries sell networks of suppliers to consumers who are uncertain about their needs "option demand markets." In these markets, suppliers may grant the intermediaries...
Do Important Drugs Reach the Market Sooner?
Since the Food and Drug Administration (FDA) Amendments of 1962, the average time from a drug's first worldwide patent application to its approval by the FDA has risen from 3.5 to 13.5 years. FDA...
Is Hospital Competition Wasteful?
David Dranove, Mark Shanley, Carol Simon
Recent attention has been given to the hypothesis that local hospital competition takes the form of costly duplication of specialized services -- the "medical arms race." This contrasts with the...
Monopolistic Competition When Price and Quality are Imperfectly Observable
David Dranove, Mark A. Satterthwaite
Consider the symmetric equilibrium of a monopolistically competitive industry in which manufacturers select price and quality to maximize expected profit and consumers maximize utility by conducting...
Rate-Setting by Diagnosis Related Groups and Hospital Specialization
Under the system of hospital reimbursement for Medicare patients, hospitals receive a prospectively determined price that varies according to the diagnosis related group (DRG) to which the patient is...
The DVD vs. DIVX Standard War: Empirical Evidence of Vaporware
In this paper, we empirically measure the effect of the DIVX preannouncement in the DVD market. We do this by measuring the effect of potential (incompatible) competition on a network undergoing...
Two important welfare implications of network effects are that (1) market forces often result in suboptimal standardization, that is, left alone the market may fail to achieve standardization when it...
The DVD Versus DIVX Standard War: Empirical Evidence of Network Effects and Preannouncement Effects
In this Paper, we empirically test for network effects and preannouncement effects in the DVD market. We do this by measuring the effect of potential (incompatible) competition on a network...
Surviving a Standards War: Lessons Learned from the Life and Death of DIVX
In April 1997, a consortium of hardware manufacturers and movie studios launched the DVD format. By that fall, electronics retailing giant Circuit City announced its intentions to launch a partially...
A Theory of Utilization Review
Through utilization review (UR), managed care organizations (MCOs) monitor and alter physician treatment decisions. We show that the value of UR depends on physician incentives. Not surprisingly,...
The Vertical Chain of Research and Development in the Pharmaceutical Industry.
Ward, Michael R, Dranove, David
This paper examines the relationship between basic and applied pharmaceutical research. The authors focus on three stages of R&D: government-funded basic research; publication in medical journals;...
Demand Inducement and the Physician/Patient Relationship.
The physician/patient relationship is a paradigm for any expert/client relationship. The physician both diagnoses the patien t's illness and recommends a treatment. This dual role gives the phys...
Is the impact of managed care on hospital prices decreasing?
Dranove, David, Lindrooth, Richard, White, William D., Zwanziger, Jack
Prior studies find that the growth of managed care through the early 1990s introduced a strong positive relationship between price and concentration in hospital markets. We hypothesize that the...
Start spreading the news: A structural estimate of the effects of New York hospital report cards
Dranove, David, Sfekas, Andrew
Research on the effects of publicly reported hospital quality report cards on patient market shares is mixed. Higher-ranking hospitals do not consistently experience increases in market share. We...
Do report cards tell consumers anything they don't already know? The case of Medicare HMOs
Estimated responses to report cards may reflect learning about quality that would have occurred in their absence (market-based learning). Using panel data on Medicare HMOs, we examine the...
Cory S. Capps, David Dranove, Shane Greenstein, Mark Satterthwaite
Elzinga/Hogarty inflow/outflow analysis is a mainstay of geographic market definition in antitrust analysis. For example, U.S. antitrust agencies lost several hospital merger challenges when evidence...
Is More Information Better? The Effects of 'Report Cards' on Health Care Providers
David Dranove, Daniel Kessler, Mark McClellan, Mark Satterthwaite
Health care report cards - public disclosure of patient health outcomes at the level of the individual physician and/or hospital - may address important informational asymmetries in markets for...
The Economic Side Effects of Dangerous Drug Announcements.
Immediately prior to the passage of the 1962 Food and Drug Administration Amendments, there were a number of drugs recalled from markets worldwide. Announcements about the dangerous side effects of...
David Dranove, Burton A. Weisbrod
With a growing emphasis on cost containment, health care providers must increasingly consider costs whenever they adopt new technologies. This has implications for the kinds of technologies that...
Regulatory Exploitation and Management Changes: Upcoding in the Hospital Industry
This paper investigates whether management teams that fail to exploit regulatory loopholes are vulnerable to replacement. We use the U.S. hospital industry in 1985-96 as a case study. A 1988 change...
A Theory of Utilization Review
David Dranove, Kathryn E. Spier
Through utilization review (UR), managed care organizations (MCOs) monitor and alter physician treatment decisions. We show that the value of UR depends on physician incentives. Not surprisingly,...