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

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Author Info
Martin Gaynor

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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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File URL: http://links.jstor.org/sici?sici=0741-6261%28198921%2920%3A1%3C59%3ACWTFTP%3E2.0.CO%3B2-Q&origin=repec
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Publisher 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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  1. Martin Gaynor, 1995. "Issues in the Industrial Organization of the Market for Physician Services," NBER Working Papers 4695, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  2. Robert Rosenman & Daniel Friesner, 2004. "Scope and scale inefficiencies in physician practices," Health Economics, John Wiley & Sons, Ltd., vol. 13(11), pages 1091-1116. [Downloadable!]
  3. W. Bradford & Robert Martin, 2000. "Partnerships, Profit Sharing, and Quality Competition in the Medical Profession," Review of Industrial Organization, Springer, vol. 17(2), pages 193-208, September. [Downloadable!] (restricted)
  4. William E. Encinosa III & Martin Gaynor & James B. Rebitzer, 1997. "The Sociology of Groups and the Economics of Incentives: Theory and Evidence on Compensation Systems," NBER Working Papers 5953, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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