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Essays On The Market Structure Of The U.S. Health Care System, Ayse S. Diebel

Dissertations, Theses, and Capstone Projects

This dissertation examines the welfare implications of vertical restraints in the U.S. health care market. I focus on two phenomena that influence vertical relationships between hospitals and insurers: vertical integration and vertical bundling. Both of these practices have potential efficiency-inducing and anti-competitive effects from a theoretical standpoint, making welfare implications ambiguous. I analyze their impact on welfare in an empirical setting. This task requires structurally modeling the market by using data on hospitals, insurers, and consumers, and simulating counterfactual worlds free of vertical restraints.

I construct my dataset by combining data from multiple sources. Hospital characteristics come from the American …