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Cooperation and conflict between very similar occupations: the case of anesthesia

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  • Kalist, David E.
  • Molinari, Noelle A.
  • Spurr, Stephen J.

Abstract

This article examines the features of a labor market in which there are two professional groups that both cooperate and directly compete with each other: certified registered nurse anesthetists (CRNAs) and anesthesiologists (MDAs). We examine how the relative numbers of these two types of anesthesia providers, and differences in regulation, affect the earnings of CRNAs, and the extent of supervision of CRNAs by MDAs. We find that both the earnings, and the likelihood of medical supervision of CRNAs, are closely determined by their market share. As the market share of CRNAs increases from 0% to 50%, the gains to MDAs from restricting competition increase; over this range the likelihood that CRNAs are supervised increases and their expected earnings decline. However, as the CRNAs’ market share increases beyond 50%, the costs to MDAs of anticompetitive measures become too large, therefore, the probability of supervision declines, and the earnings of CRNAs increase.

Suggested Citation

  • Kalist, David E. & Molinari, Noelle A. & Spurr, Stephen J., 2011. "Cooperation and conflict between very similar occupations: the case of anesthesia," Health Economics, Policy and Law, Cambridge University Press, vol. 6(02), pages 237-264, March.
  • Handle: RePEc:cup:hecopl:v:6:y:2011:i:02:p:237-264_00
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    Cited by:

    1. Matthew D. Baird & Lindsay Daugherty & Krishna B. Kumar, 2017. "Improving Estimation of Labor Market Disequilibrium Through Inclusion of Shortage Indicators," Working Papers WR-1175, RAND Corporation.

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