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Competition and pricing behavior in long term care markets: Evidence from the Market for Assistance in Daily Housekeeping Activities

Author

Listed:
  • Remco van Eijkel
  • Mark Kattenberg

    (CPB Netherlands Bureau for Economic Policy Analysis)

  • Ab van der Torre

    (SCP)

Abstract

Exploiting a rich data set on the Dutch market for assistance in daily housekeeping activities (ADHA), we find that larger providers obtain a higher price than do small providers. However, compared to other studies on market power in care markets this price difference is considered small to moderate. Our identification strategy relies on the exogenous variation in market shares in January ’07, the very first month after ADHA was decentralized to municipalities. Zooming in on our main outcome, we obtain that the small but significant effect of market size on price is merely driven by the pricing behavior of for-profit providers.

Suggested Citation

  • Remco van Eijkel & Mark Kattenberg & Ab van der Torre, 2018. "Competition and pricing behavior in long term care markets: Evidence from the Market for Assistance in Daily Housekeeping Activities," CPB Discussion Paper 373, CPB Netherlands Bureau for Economic Policy Analysis.
    • Handle: RePEc:cpb:discus:373
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    References listed on IDEAS

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    Cited by:

    1. Marianne Tenand & Pieter Bakx & Bram Wouterse, 2021. "The impact of co-payments for nursing home care on use, health, and welfare," CPB Discussion Paper 430, CPB Netherlands Bureau for Economic Policy Analysis.
    2. Visa Pitkänen, 2022. "Competition and efficiency in repeated procurements: Lessons from the Finnish rehabilitation markets," Health Economics, John Wiley & Sons, Ltd., vol. 31(5), pages 820-835, May.

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    More about this item

    JEL classification:

    • J51 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Trade Unions: Objectives, Structure, and Effects

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