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Professional Partnerships and Matching in Obstetrics

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Author Info
Andrew Epstein
Jonathan D. Ketcham
Sean Nicholson

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Abstract

Theory indicates that internally-differentiated professional partnerships can promote matching between heterogeneous consumers and professionals, particularly when consumers have imperfect information or markets have barriers to referrals between firms. We test this in obstetrics markets, relying on random assignment of patients to physicians to generate unbiased measures of a physician's treatment style and skill, and on simulations to measure a physician's specialization. Consumers match to professionals along all three dimensions -- specialization, style and skill -- based on consumers' observed characteristics and unobserved preferences. We conclude that internally-differentiated partnerships promote matching in ways that improve consumers' welfare and health.

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Publisher Info
Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 14070.

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Date of creation: Jun 2008
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Handle: RePEc:nbr:nberwo:14070

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Find related papers by JEL classification:
D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search, Learning, and Information
I12 - Health, Education, and Welfare - - Health - - - Health Production
J44 - Labor and Demographic Economics - - Particular Labor Markets - - - Professional Labor Markets and Occupations
L15 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Information and Product Quality
L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance

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    Other versions:
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  9. Amalia R. Miller, 2006. "The Impact of Midwifery-Promoting Public Policies on Medical Interventions and Health Outcomes," The B.E. Journal of Economic Analysis & Policy, Berkeley Electronic Press, vol. 0(1). [Downloadable!]
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