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The silent majority fallacy of the Elzinga-Hogarty criteria : a critique and new approach to analyzing hospital mergers

Author: Cory S Capps; National Bureau of Economic Research.
Publisher: Cambridge, MA. : National Bureau of Economic Research, ©2001.
Series: Working paper series (National Bureau of Economic Research), no. 8216.
Edition/Format:   eBook : Document : EnglishView all editions and formats
Database:WorldCat
Summary:
Abstract: Elzinga/Hogarty inflow/outflow analysis is a mainstay of geographic market definition in antitrust analysis. For example, U.S. antitrust agencies lost several hospital merger challenges when evidence showed that a nontrivial fraction of local patients traveled outside the local community for care. We show that the existence of traveling consumers may not limit seller market power with respect to  Read more...
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Genre/Form: Econometric models
Additional Physical Format: Print version:
Silent majority fallacy of the Elzinga-Hogarty criteria.
Cambridge, MA. : National Bureau of Economic Research, ©2001
(OCoLC)46790090
Material Type: Document, Internet resource
Document Type: Internet Resource, Computer File
All Authors / Contributors: Cory S Capps; National Bureau of Economic Research.
OCLC Number: 603907280
Reproduction Notes: Electronic reproduction. [S.l.] : HathiTrust Digital Library, 2010. MiAaHDL
Description: 1 online resource (49, [1] pages) : map.
Details: Master and use copy. Digital master created according to Benchmark for Faithful Digital Reproductions of Monographs and Serials, Version 1. Digital Library Federation, December 2002.
Series Title: Working paper series (National Bureau of Economic Research), no. 8216.
Other Titles: Critique and new approach to analyzing hospital mergers prices
New approach to analyzing hospital mergers
Responsibility: Cory S. Capps [and others].

Abstract:

Abstract: Elzinga/Hogarty inflow/outflow analysis is a mainstay of geographic market definition in antitrust analysis. For example, U.S. antitrust agencies lost several hospital merger challenges when evidence showed that a nontrivial fraction of local patients traveled outside the local community for care. We show that the existence of traveling consumers may not limit seller market power with respect to non-traveling consumers--a phenomenon we label the silent majority fallacy. We estimate a random coefficients logit model of hospital demand and use the estimates to predict the increase in price that various mergers would generate. Two distinct methods of predicting the price increase are implemented and both indicate that even in suburban areas with high outflows of consumers, some hospital mergers could lead to significant price increases.

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