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The Diffusion of a Medical Innovation: Is Success in the Stars? Further Evidence

Listed author(s):
  • Mary A. Burke


    (Economic Research Department, Federal Reserve Bank of Boston, P.O. Box 55882, Boston, MA 02205, USA)

  • Gary M. Fournier


    (Department of Economics, Florida State University, Tallahassee, FL 32306-2180, USA)

  • Kislaya Prasad


    (Robert H. Smith School of Business, University of Maryland at College Park, College Park, MD 20742, USA)

Burke, Fournier, and Prasad (2007) present evidence of star effects in the adoption and utilization of stents following their introduction in the mid-1990s. Here, we experiment with alternative constructions of star status and with additional control variables in the analysis and find further supporting evidence. Conditioning star status upon prior adoption of stents yields significant effects on the utilization of stents by nonstars. In contrast, the results show no evidence that the number of nonstars present affects the utilization of stars. Moreover, the empirical effect is stronger when the definition of star physicians is restricted to those with more recent residency training. We argue for further research focusing on asymmetric aspects of peer effects among physicians interacting locally in medical practice environments.

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Article provided by Southern Economic Association in its journal Southern Economic Journal.

Volume (Year): 75 (2009)
Issue (Month): 4 (April)
Pages: 1274-1278

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Handle: RePEc:sej:ancoec:v:75:4:y:2009:p:1274-1278
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