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Does Bad News Travel Faster? On the Determinants of Medical Technology Abandonment

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  • Julie Berez
  • Guy David
  • David H. Howard
  • Mark D. Neuman

Abstract

This paper studies the abandonment of technology in reaction to information shocks. While the diffusion of new technologies has been widely researched, the factors driving abandonment are not well understood. This is particularly important in the health care sector, where curbing overuse of low-value technologies is a priority. Using the abandonment of pulmonary artery catheters (PACs) as an empirical application, we aim to understand patterns of human behavior when information that a technology is ineffective becomes available. This study focuses on the role of peer interaction in explaining medical technology abandonment. We find that surgeons alter their use of PACs in response to that of new surgeons who joined their hospitals directly from a fellowship in cardiothoracic surgery.

Suggested Citation

  • Julie Berez & Guy David & David H. Howard & Mark D. Neuman, 2018. "Does Bad News Travel Faster? On the Determinants of Medical Technology Abandonment," Journal of Human Capital, University of Chicago Press, vol. 12(4), pages 569-603.
    • Handle: RePEc:ucp:jhucap:doi:10.1086/700078
    DOI: 10.1086/700078
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    Cited by:

    1. McKibbin, Rebecca, 2023. "The effect of RCTs on drug demand: Evidence from off-label cancer drugs," Journal of Health Economics, Elsevier, vol. 90(C).
    2. Wu, Bingxiao & David, Guy, 2022. "Information, relative skill, and technology abandonment," Journal of Health Economics, Elsevier, vol. 83(C).
    3. Dubois, Pierre & Tunçel, Tuba, 2021. "Identifying the effects of scientific information and recommendations on physicians’ prescribing behavior," Journal of Health Economics, Elsevier, vol. 78(C).

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