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Geographic variations in a model of physician treatment choice with social interactions

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  • Mary A. Burke
  • Gary M. Fournier
  • Kislaya Prasad

Abstract

Location-specific norms of behavior are a widespread phenomenon. In the case of medical practice, numerous studies have found that geographic location exerts a strong influence on the choice of treatments and procedures. This paper shows how the presence of social influence on treatment decisions can help to explain this phenomenon. We construct a theoretical model in which physicians' treatment choices depend on patients' characteristics and on the recent choices of nearby peers - either because there are local knowledge spillovers or because physicians want to conform to local practice patterns. In our model, regional differences in the patient mix give rise to geographically divergent treatment patterns - the treatment a patient receives depends on where she lives. Investigation of Florida data reveals significant geographic variation in treatment rates consistent with the predictions of our model. Implications for patient welfare are explored.

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  • Mary A. Burke & Gary M. Fournier & Kislaya Prasad, 2009. "Geographic variations in a model of physician treatment choice with social interactions," Working Papers 09-5, Federal Reserve Bank of Boston.
    • Handle: RePEc:fip:fedbwp:09-5
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    11. H. Peyton Young & Mary A. Burke, 2001. "Competition and Custom in Economic Contracts: A Case Study of Illinois Agriculture," American Economic Review, American Economic Association, vol. 91(3), pages 559-573, June.
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    Cited by:

    1. Emilia Simeonova & Niels Skipper & Peter R. Thingholm, 2020. "Physician Health Management Skills and Patient Outcomes," NBER Working Papers 26735, National Bureau of Economic Research, Inc.
    2. H Peyton Young, 2014. "The Evolution of Social Norms," Economics Series Working Papers 726, University of Oxford, Department of Economics.
    3. H Peyton Young & Itai Arieli & Yakov Babichenko & Ron Peretz, 2019. "The Speed of Innovation Diffusion in Social Networks," Economics Series Working Papers 884, University of Oxford, Department of Economics.
    4. Sergei Koulayev & Emilia Simeonova & Niels Skipper, 2017. "Can Physicians Affect Patient Adherence With Medication?," Health Economics, John Wiley & Sons, Ltd., vol. 26(6), pages 779-794, June.
    5. Peter Rønø Thingholm, 2023. "Provider Spill-Overs in Opioid Prescription Leniency and Patient – Labor Market Outcomes," Economics Working Papers 2023-05, Department of Economics and Business Economics, Aarhus University.
    6. Brosig-Koch, Jeannette & Hennig-Schmidt, Heike & Kairies-Schwarz, Nadja & Kokot, Johanna & Wiesen, Daniel, 2020. "Physician performance pay: Experimental evidence," HERO Online Working Paper Series 2020:3, University of Oslo, Health Economics Research Programme.
    7. Arieli, Itai & Babichenko, Yakov & Peretz, Ron & Young, H. Peyton, 2020. "The speed of innovation diffusion in social networks," LSE Research Online Documents on Economics 102538, London School of Economics and Political Science, LSE Library.
    8. Itai Arieli & Yakov Babichenko & Ron Peretz & H. Peyton Young, 2018. "The Speed of Innovation Diffusion," Economics Papers 2018-W06, Economics Group, Nuffield College, University of Oxford.
    9. Jonathan Cook & Noah Newberger & Sami Smalling, 2024. "COVID vaccination and social norms," Contemporary Economic Policy, Western Economic Association International, vol. 42(4), pages 660-682, October.
    10. Itai Arieli & Yakov Babichenko & Ron Peretz & H. Peyton Young, 2019. "The Speed of Innovation Diffusion in Social Networks," Economics Papers 2019-W07, Economics Group, Nuffield College, University of Oxford.
    11. Emily Tanimura, 2021. "Statistical discrimination without knowing statistics: blame social interactions?," Working Papers hal-03096126, HAL.
    12. H Peyton Young & Sam Jindani, 2020. "The dynamics of costly social norms," Economics Series Working Papers 883, University of Oxford, Department of Economics.
    13. Itai Arieli & Yakov Babichenko & Ron Peretz & H. Peyton Young, 2020. "The Speed of Innovation Diffusion in Social Networks," Econometrica, Econometric Society, vol. 88(2), pages 569-594, March.
    14. Mangham-Jefferies, Lindsay & Hanson, Kara & Mbacham, Wilfred & Onwujekwe, Obinna & Wiseman, Virginia, 2014. "What determines providers' stated preference for the treatment of uncomplicated malaria?," Social Science & Medicine, Elsevier, vol. 104(C), pages 98-106.
    15. Wallace, Chris & Young, H. Peyton, 2015. "Stochastic Evolutionary Game Dynamics," Handbook of Game Theory with Economic Applications,, Elsevier.
    16. Emily Tanimura, 2021. "Statistical discrimination without knowing statistics: blame social interactions?," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) hal-03096126, HAL.

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