The impact of competition on quality and prices in the English care homes market. Forder, J. & Allan, S. Journal of health economics, 34C:73-83, Elsevier B.V, 12, 2013.
abstract   bibtex   
This study assesses the impact of competition on quality and price in the English care/nursing homes market. Considering the key institutional features, we use a theoretical model to assess the conditions under which further competition could increase or reduce quality. A dataset comprising the population of 10,000 care homes was used. We constructed distance/travel-time weighted competition measures. Instrumental variable estimations, used to account for the endogeneity of competition, showed quality and price were reduced by greater competition. Further analyses suggested that the negative quality effect worked through the effect on price - higher competition reduces revenue which pushes down quality.
@article{
 title = {The impact of competition on quality and prices in the English care homes market},
 type = {article},
 year = {2013},
 identifiers = {[object Object]},
 keywords = {C33,Competition,I11,Instrumental variables,L11,Nursing homes,Product differentiation,Quality},
 pages = {73-83},
 volume = {34C},
 month = {12},
 publisher = {Elsevier B.V},
 day = {30},
 city = {PSSRU, University of Kent, Canterbury, Kent CT2 7NF, United Kingdom. Electronic address: j.e.forder@kent.ac.uk.; PSSRU, University of Kent, Canterbury, Kent CT2 7NF, United Kingdom. Electronic address: s.allan@kent.ac.uk.},
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 notes = {ID: 68322; CI: Copyright (c) 2013; JID: 8410622; OTO: NOTNLM; 2012/02/17 [received]; 2013/11/15 [revised]; 2013/11/30 [accepted]; aheadofprint},
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 abstract = {This study assesses the impact of competition on quality and price in the English care/nursing homes market. Considering the key institutional features, we use a theoretical model to assess the conditions under which further competition could increase or reduce quality. A dataset comprising the population of 10,000 care homes was used. We constructed distance/travel-time weighted competition measures. Instrumental variable estimations, used to account for the endogeneity of competition, showed quality and price were reduced by greater competition. Further analyses suggested that the negative quality effect worked through the effect on price - higher competition reduces revenue which pushes down quality.},
 bibtype = {article},
 author = {Forder, J and Allan, S},
 journal = {Journal of health economics}
}

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