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The Industrial Organization of Health-Care Markets

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  • Martin Gaynor
  • Kate Ho
  • Robert J. Town

Abstract

The U.S. health-care sector is large and growing—health-care spending in 2011 amounted to $2.7 trillion and 18 percent of GDP. Approximately half of health-care output is allocated via markets. In this paper, we analyze the industrial organization literature on health-care markets, focusing on the impact of competition on price, quality, and treatment decisions for health-care providers and health insurers. We conclude with a discussion of research opportunities for industrial organization economists, including opportunities created by the U.S. Patient Protection and Affordable Care Act. (JEL J15, J24, J71, J81, K31)

Suggested Citation

  • Martin Gaynor & Kate Ho & Robert J. Town, 2015. "The Industrial Organization of Health-Care Markets," Journal of Economic Literature, American Economic Association, vol. 53(2), pages 235-284, June.
    • Handle: RePEc:aea:jeclit:v:53:y:2015:i:2:p:235-84
    Note: DOI: 10.1257/jel.53.2.235
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    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J71 - Labor and Demographic Economics - - Labor Discrimination - - - Hiring and Firing
    • J81 - Labor and Demographic Economics - - Labor Standards - - - Working Conditions
    • K31 - Law and Economics - - Other Substantive Areas of Law - - - Labor Law

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