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Health Services as Credence Goods: a Field Experiment

Author

Listed:
  • Felix Gottschalk
  • Wanda Mimra

    (LEM - Lille économie management - UMR 9221 - UA - Université d'Artois - UCL - Université catholique de Lille - Université de Lille - CNRS - Centre National de la Recherche Scientifique)

  • Christian Waibel

Abstract

Agency problems are a defining characteristic of healthcare markets. We present the results from a field experiment in the market for dental care: a test patient who does not need treatment is sent to 180 dentists to receive treatment recommendations. In the experiment, we vary the socio-economic status of the patient and whether a second opinion signal is sent. Furthermore, measures of market, practice and dentist characteristics are collected. We observe an overtreatment recommendation rate of 28% and a striking heterogeneity in treatment recommendations. Furthermore, we find significantly fewer overtreatment recommendations for patients with higher socio-economic status compared with lower socio-economic status for standard visits, suggesting a complex role for patients' socio-economic status. Competition intensity, measured by dentist density, does not have a significant influence on overtreatment. Dentists with shorter waiting times are more likely to propose unnecessary treatment.

Suggested Citation

  • Felix Gottschalk & Wanda Mimra & Christian Waibel, 2020. "Health Services as Credence Goods: a Field Experiment," Post-Print hal-03137768, HAL.
    • Handle: RePEc:hal:journl:hal-03137768
    DOI: 10.1093/ej/ueaa024
    as

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