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Testing for Price Leadership and for Reputation Goods Effects: Swedish Dental Services

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  • Eriksson, Rickard

    ()
    (Swedish Institute for Social Research, Stockholm University)

Abstract

Sweden deregulated the prices for dental services in 1999. Twenty-one Swedish county councils provide public dental services. They compete with 3000 small independent private firms. Public and private providers are subsidized by the government to an equal extent, but most of the costs are borne by the consumers. The private firms’ price setting is strongly influenced by the county councils’ prices after the deregulation, i.e. the county councils act as price leaders. Prices increased more in large markets, which is consistent with dental services being a reputation good. There was no effect of the dentist’s gender on prices, but immigrant dentists increased their prices slightly less than native ones.

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Bibliographic Info

Paper provided by Swedish Institute for Social Research in its series Working Paper Series with number 5/2004.

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Length: 19 pages
Date of creation: 11 Oct 2004
Date of revision:
Handle: RePEc:hhs:sofiwp:2004_005

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Related research

Keywords: dental services; price leadership; reputation goods;

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  1. Raymond Deneckere & Dan Kovenock, 1988. "Price Leadership," Discussion Papers 773, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
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Cited by:
  1. Engelmann, D. & Müller, W., 2008. "Collusion through Price Ceilings? In Search of a Focal-Point Effect," Discussion Paper 2008-036, Tilburg University, Tilburg Law and Economic Center.

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