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Pricing behavior in long term care markets: evidence from provider-level data for home help services

Author

Listed:
  • Remco Eijkel

    (SEO Amsterdam Economics)

  • Mark Kattenberg

    (CPB Netherlands Bureau for Economic Policy Analysis)

  • Ab Torre

    (The Netherlands Institute for Social Research)

Abstract

Exploiting a rich data set on the Dutch market for home help services, we find that larger providers obtain a higher price than do small providers. However, compared to other studies on market power in care markets this price difference is considered small to moderate. Our identification strategy relies on the exogenous variation in market shares in January’07, the very first month after home help was decentralized to municipalities. Zooming in on our main outcome, we obtain that the small but significant effect of market size on price is merely driven by the pricing behavior of for-profit providers.

Suggested Citation

  • Remco Eijkel & Mark Kattenberg & Ab Torre, 2023. "Pricing behavior in long term care markets: evidence from provider-level data for home help services," International Journal of Health Economics and Management, Springer, vol. 23(1), pages 59-83, March.
    • Handle: RePEc:kap:ijhcfe:v:23:y:2023:i:1:d:10.1007_s10754-022-09334-9
    DOI: 10.1007/s10754-022-09334-9
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    More about this item

    Keywords

    Long-term care; Home help; Pricing behavior; Competition; For-profits; Non-for-profits;
    All these keywords.

    JEL classification:

    • I11 - Health, Education, and Welfare - - Health - - - Analysis of Health Care Markets
    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
    • L33 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Comparison of Public and Private Enterprise and Nonprofit Institutions; Privatization; Contracting Out

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