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Painful Bargaining: Evidence from Anesthesia Rollups

Author

Listed:
  • Aslihan Asil
  • Paulo Ramos
  • Amanda Starc
  • Thomas G. Wollmann

Abstract

A rollup is a series of acquisitions through which a financial sponsor consolidates ownership. Increasingly, this strategy is shaping economically important markets, but historically, it has escaped antitrust enforcement. We study this phenomenon in the anesthesia industry, site of the first rollup-based antitrust case in US history. First, we identify 18 other rollups that are observationally similar to the litigated ones. Next, we show that rollups consolidate ownership and that prices rise sharply as competing practices are acquired. Last, we estimate a structural bargaining model and simulate counterfactual equilibria under remedies that courts are likely to consider.

Suggested Citation

  • Aslihan Asil & Paulo Ramos & Amanda Starc & Thomas G. Wollmann, 2024. "Painful Bargaining: Evidence from Anesthesia Rollups," NBER Working Papers 33217, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:33217
    Note: EH IO
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    More about this item

    JEL classification:

    • I11 - Health, Education, and Welfare - - Health - - - Analysis of Health Care Markets
    • L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance

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