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RAND Journal of Economics

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Most recent articles from RAND Journal of Economics
Cooperation among competitors: some economics of payment card associations.
We analyze platforms in two-sided markets with network externalities, using the specific context of a payment card association. We study the cooperative determination of the interchange fee by . . .

Do pharmaceutical prices respond to potential patient out-of-pocket expenses?
Despite the importance of patient insurance in the market for prescription pharmaceuticals, little is known about the impact of patient reimbursement on the pricing behavior of pharmaceutical . . .

Introduction.
In April 2000, the National Bureau of Economic Research sponsored a conference in Nashville, Tennessee, on "The Industrial Organization of Medical Care." Its goal was to improve our understanding . . .

Why do manufacturers issue coupons? An empirical analysis of breakfast cereals.
We explore the relationship between shelf prices and manufacturers' coupons for 25 ready-to-eat breakfast cereals. We find that shelf prices are lower during periods when coupons are available. . . .

Social capital, corporate culture, and incentive intensity.
We study the design of incentives in a firm in which cooperation among workers is important. Since cooperation is not observed, the firm is unable to reward workers for it. Workers may, . . .

Are for-profit hospital conversions harmful to patients and to Medicare?
We examine how changes in hospital ownership to and from for-profit status affect quality and Medicare payments per hospital stay. We hypothesize that hospitals converting to for-profit ownership . . .

Hospital market structure and the behavior of not-for-profit hospitals.
I exploit a change in hospital financial incentives to examine whether the behavior of private not-for-profit hospitals is systematically related to the share of nearby hospitals organized . . .

Private information, strategic behavior, and efficiency in Cournot markets.
When analyzing a Cournot market with strictly convex costs dependent on a private information parameter, do we err more by ignoring market power or by ignoring the impact of incomplete information? . . .

Quality-based price discrimination and tax incidence: evidence from gasoline and diesel cars.
The existing tax policies toward gasoline and diesel cars in European countries provide a unique opportunity to analyze quality-based price discrimination and the implied tax incidence. In my . . .

The strategic use of tying to preserve and create market power in evolving industries.
This article investigates how the tying of complementary products can be used to preserve and create monopoly positions. We first show how a monopolist of a product in the current period can use . . .

The effects of hospital ownership on medical productivity.
To develop new evidence on how hospital ownership and other aspects of hospital market composition affect health care productivity, we analyze longitudinal data on the medical expenditures and . . .

The impact of information technology on emergency health care outcomes.
We analyze the productivity of information technology in emergency response systems. "Enhanced 911" (E911) is information technology that links caller identification to a location database and so . . .

Modest advertising signals strength.
We reexamine the role of prices and advertising expenditures as signals of quality. Consumers are either "fastidious" or "indifferent." Fastidious individuals value high quality more and low . . .

Litigation and settlement in patent infringement cases.
A patent grants its owner the right to sue intruders that have been identified. The patentholder must then supervise the market and react in case of infringement. His reaction may be to go to . . .

Structural estimation of the affiliated private value auction model.
We consider the structural estimation of the affiliated private value (APV) model in first-price sealed-bid auctions. The model allows for bidders' individual efficiencies and opportunity costs, . . .

Managed care, technology adoption, and health care: the adoption of neonatal intensive care.
Managed care may influence technology diffusion in health care. This article empirically examines the relationship between HMO market share and the diffusion of neonatal intensive care units. . . .

Does competition under Medicare Prospective Payment selectively reduce expenditures on high-cost patients?
Competition and prospective payment have been widely used to control health care costs but may together provide incentives to selectively reduce expenditures on high-cost relative to . . .

Cheap-talk coordination of entry by privately informed firms.
I analyze and compare the effects of sequential and simultaneous cheap-talk communication (e.g., preannouncement of entry) among privately informed potential entrants who then play a normal-form . . .

Firm financial condition and airline price wars.
A firm that knows that cutting price may trigger a price war must weigh present versus future gains and losses when considering such a move. The firm's financial situation can affect how it values . . .

Product choice and oligopoly market structure.
I propose an empirical model to analyze product differentiation and oligopoly market structure. The model endogenizes firms' product-type decisions, measures how effects of competitors . . .

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