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Information Heterogeneity and the Demand for Healthcare: Evidence from GPs in England

Author

Listed:
  • Zach Y. Brown
  • Christopher Hansman
  • Jordan Keener
  • Andre F. Veiga

Abstract

Do different patient choices reflect what they value or what they know? We study this question using variation created by rounded star ratings for GP practices, which changes the information about providers that patients can publicly observe. Differences in the demand response to these ratings indicate that some groups—notably high-income patients—are better informed about provider quality. We develop an empirical demand model that allows both information and preferences to vary across patients and find that heterogeneity in choice overwhelmingly reflects differences in information. Standard full-information demand models underestimate the gains from improving providers by more than 50%, and fail to capture the incidence of those gains. Low-income and other low-information groups benefit substantially from such improvements even when their observed demand for highly-rated GPs is weak.

Suggested Citation

  • Zach Y. Brown & Christopher Hansman & Jordan Keener & Andre F. Veiga, 2023. "Information Heterogeneity and the Demand for Healthcare: Evidence from GPs in England," NBER Working Papers 31033, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:31033
    Note: EH IO
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    Cited by:

    1. Canta, Chiara & Madio, Leonardo & Mantovani, Andrea & Reggiani, Carlo, 2026. "Regulating Physicians’ Prices in the Presence of Health Platforms," TSE Working Papers 26-1741, Toulouse School of Economics (TSE).
    2. Leyden, Benjamin T., 2025. "Platform design and innovation incentives: Evidence from the product rating system on Apple's App Store," International Journal of Industrial Organization, Elsevier, vol. 99(C).
    3. Ellegård, Lina Maria & Kjellsson, Gustav & Kovacs, Roxanne & Zhao, Yuejun, 2025. "Patient choice and socioeconomic disparities in the quality of healthcare: Evidence from Swedish registry data," Social Science & Medicine, Elsevier, vol. 383(C).
    4. Sá, Luís & Straume, Odd Rune, 2024. "Hospital competition when patients learn through experience," Journal of Health Economics, Elsevier, vol. 97(C).
    5. Empel, Giovanni & Gravelle, Hugh & Santos, Rita, 2023. "Does quality affect choice of family physician? Evidence from patients changing general practice without changing address," Economic Modelling, Elsevier, vol. 126(C).

    More about this item

    JEL classification:

    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
    • I11 - Health, Education, and Welfare - - Health - - - Analysis of Health Care Markets
    • I14 - Health, Education, and Welfare - - Health - - - Health and Inequality
    • L15 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Information and Product Quality

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