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

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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)

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Rickard Eriksson

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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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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Find related papers by JEL classification:
I11 - Health, Education, and Welfare - - Health - - - Analysis of Health Care Markets
L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets

This paper has been announced in the following NEP Reports:

NEP-ALL-2004-10-21 (All new papers)

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

Deneckere, Raymond J & Kovenock, Dan, 1992. "Price Leadership," Review of Economic Studies, Blackwell Publishing, vol. 59(1), pages 143-62, January. [Downloadable!] (restricted)
Other versions:
- Raymond Deneckere & Dan Kovenock, 1988. "Price Leadership," Discussion Papers 773, Northwestern University, Center for Mathematical Studies in Economics and Management Science. [Downloadable!]

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