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Information presentation and firm response: Evidence from fertility clinics

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  • Wu, Bingxiao

Abstract

Behavioral economists have documented the existence of information-processing biases in consumer behavior, yet relatively few studies have examined firms’ responses to information presentation in public reporting. This paper investigates how fertility clinics in the U.S. respond to an exogenous change in the reporting format of Assisted Reproductive Technology (ART) Success Rates reports, which disclose clinic-specific quality information to the public. We find that a new format that highlights the “singleton-birth rate” quality dimension is associated with a lower number of embryos transferred by fertility clinics, and this effect is stronger among clinics facing local competition. This finding implies that properly presenting quality information in public reporting is important to ensure quality improvement.

Suggested Citation

  • Wu, Bingxiao, 2020. "Information presentation and firm response: Evidence from fertility clinics," Economics Letters, Elsevier, vol. 197(C).
    • Handle: RePEc:eee:ecolet:v:197:y:2020:i:c:s016517652030389x
    DOI: 10.1016/j.econlet.2020.109629
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    More about this item

    Keywords

    Information presentation; Public reporting; Competition; Assisted Reproductive Technology;
    All these keywords.

    JEL classification:

    • I1 - Health, Education, and Welfare - - Health
    • L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance
    • D8 - Microeconomics - - Information, Knowledge, and Uncertainty

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