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Competition And Multilevel Technology Adoption: A Dynamic Analysis Of Electronic Medical Records Adoption In U.S. Hospitals

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  • Yanfei Wang

Abstract

This article develops and estimates a dynamic oligopoly model to study the multilevel adoption of electronic medical records in U.S. hospitals. I find substantial competitive effects in the adoption process, and hospitals of the same adoption level compete more intensely than hospitals of different levels do. Counterfactual experiments suggest that competitive effects prompt hospitals to engage in preemptive adoption and greatly deter the second adopter in a duopoly market. By evaluating the government's subsidy policy enacted in 2009, I find that a policy strategy accounting for market and hospital heterogeneity and competitive effects would have been more effective in stimulating adoption.

Suggested Citation

  • Yanfei Wang, 2022. "Competition And Multilevel Technology Adoption: A Dynamic Analysis Of Electronic Medical Records Adoption In U.S. Hospitals," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 63(3), pages 1357-1395, August.
    • Handle: RePEc:wly:iecrev:v:63:y:2022:i:3:p:1357-1395
    DOI: 10.1111/iere.12586
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