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Competition within the Firm: Theory Plus Some Evidence from Medical Group Practice

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  • Martin Gaynor

Abstract

Recent work on the economics of the firm and other organizations has emphasized the importance of internal organization and incentives. The issue of competition within the firm has not arisen, however. In this article I construct a model of nonprice competition among members of a professional partnership and test the model with data on medical group practice. The empirical results are consistent with the hypothesis of nonprice competition among members of the firm.

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Bibliographic Info

Article provided by The RAND Corporation in its journal RAND Journal of Economics.

Volume (Year): 20 (1989)
Issue (Month): 1 (Spring)
Pages: 59-76

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Handle: RePEc:rje:randje:v:20:y:1989:i:spring:p:59-76

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Cited by:
  1. Kappen, Philip, 2011. "Competence-creating overlaps and subsidiary technological evolution in the multinational corporation," Research Policy, Elsevier, Elsevier, vol. 40(5), pages 673-686, June.
  2. Martin Gaynor, 1994. "Issues in the Industrial Organization of the Market for Physician Services," NBER Working Papers 4695, National Bureau of Economic Research, Inc.
  3. Stéphane Jacobzone & Lise Rochaix, 1997. "L'hypothèse de demande induite : un bilan économique," Économie et Prévision, Programme National Persée, Programme National Persée, vol. 129(3), pages 25-36.
  4. Martin Gaynor & Paul Gertler, 1990. "Moral Hazard in Partnerships," NBER Working Papers 3373, National Bureau of Economic Research, Inc.

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