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The Formation of Peer Reputation among Physicians and Its Effect on Technology Adoption

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  • Amol Navathe
  • Guy David

Abstract

This paper studies patient volume and the severity of case mix as they relate to physicians' human capital accumulation and pace of technology adoption by exploring a quality signaling mechanism through which physicians build peer reputation. We show that volume building leads physicians to actively manage case mix and find that successful surgeries (particularly for difficult cases) raise future volume, whereas failed surgeries (particularly for easy cases) deplete it. Surgeons with a high patient census and a low-severity case mix adopt the new technology more rapidly. These findings highlight the role of peer reputation for growing practice size and the timing of technology adoption. (c) 2009 by The University of Chicago. All rights reserved.

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  • Amol Navathe & Guy David, 2009. "The Formation of Peer Reputation among Physicians and Its Effect on Technology Adoption," Journal of Human Capital, University of Chicago Press, vol. 3(4), pages 289-322.
    • Handle: RePEc:ucp:jhucap:v:3:y:2009:i:4:p:289-322
    DOI: 10.1086/652900
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    Cited by:

    1. Tinglong Dai & Sridhar Tayur, 2022. "Designing AI‐augmented healthcare delivery systems for physician buy‐in and patient acceptance," Production and Operations Management, Production and Operations Management Society, vol. 31(12), pages 4443-4451, December.
    2. Leila Agha & Dan Zeltzer, 2022. "Drug Diffusion through Peer Networks: The Influence of Industry Payments," American Economic Journal: Economic Policy, American Economic Association, vol. 14(2), pages 1-33, May.
    3. Andrew J. Epstein & Sean Nicholson & David A. Asch, 2013. "The Production of and Market for New Physicians' Skill," NBER Working Papers 18678, National Bureau of Economic Research, Inc.
    4. Tinglong Dai & Shubhranshu Singh, 2020. "Conspicuous by Its Absence: Diagnostic Expert Testing Under Uncertainty," Marketing Science, INFORMS, vol. 39(3), pages 540-563, May.
    5. Andrew J. Epstein & Sean Nicholson & David A. Asch, 2016. "The Production of and Market for New Physicians’ Skill," American Journal of Health Economics, MIT Press, vol. 2(1), pages 41-65, January.

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