American Economic Journal Economic Policy · 2017 · 50 citations · 34 references
Social SciencesEconomicsInsuranceHealth EconomicsMicroeconomicsPricing TheoryConsumer ChoiceConsumer SearchHealth Insurance EconomicsHealth Insurance MarketsInformation EconomicsInsurance CoverageHealth Care EconomicsHealth Care PricesInsurance Markets Under Asymmetric InformationPrice Information SearchPricing Under Imperfect Information
Consumers rarely know the price of medical care before they consume it. I use variation in the timing of access to a new source of price information to show how access to and search for price information leads consumers to pay significantly less for care. I provide suggestive evidence that insurance coverage inhibits the use of price information, rationalizing the relatively low rates of search. The results indicate that availability of price information could have large impacts on prices even in the absence of general equilibrium effects. (JEL D82, D83, G22, I11, I13)
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