Working Paper: NBER ID: w14070
Authors: Andrew Epstein; Jonathan D. Ketcham; Sean Nicholson
Abstract: Theory indicates that internally-differentiated professional partnerships can promote matching between heterogeneous consumers and professionals, particularly when consumers have imperfect information or markets have barriers to referrals between firms. We test this in obstetrics markets, relying on random assignment of patients to physicians to generate unbiased measures of a physician's treatment style and skill, and on simulations to measure a physician's specialization. Consumers match to professionals along all three dimensions -- specialization, style and skill -- based on consumers' observed characteristics and unobserved preferences. We conclude that internally-differentiated partnerships promote matching in ways that improve consumers' welfare and health.
Keywords: obstetrics; matching; professional partnerships; consumer welfare; health outcomes
JEL Codes: D83; I12; J44; L15; L25
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| conditions developing later in pregnancy (J13) | financial disincentives for referrals (G51) |
| matching of high-risk patients (I11) | improved health outcomes (I14) |
| matching patients with skilled physicians (I11) | better maternal health outcomes (I14) |
| internally differentiated partnerships (L14) | enhance matching (C78) |
| enhance matching (C78) | improved health outcomes (I14) |
| differentiated group practices (J79) | larger proportion of high-risk patients matched with specialists (I11) |