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Market structure and competition in the healthcare industry. Results from a transition economy

Lábaj, Martin and Silanic, Peter and Weiss, Christoph and Yontcheva, Biliana (2018) Market structure and competition in the healthcare industry. Results from a transition economy. The European Journal of Health Economics. ISSN 1618-7598

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Abstract

The present paper provides first empirical evidence on the relationship between market size and the number of firms in the healthcare industry for a transition economy. We estimate market-size thresholds required to support different numbers of suppliers (firms) for three occupations in the healthcare industry in a large number of distinct geographic markets in Slovakia, taking into account the spatial interaction between local markets. The empirical analysis is carried out for three time periods (1995, 2001 and 2010) which characterise different stages of the transition process. Our results suggest that the relationship between market size and the number of firms differs both across industries and across periods. In particular, we find that pharmacies, as the only completely liberalised market in our dataset, experience the largest change in competitive behaviour during the transition process. Furthermore, we find evidence for correlation in entry decisions across administrative borders, suggesting that future market analysis should aim to capture these regional effects.

Item Type: Article
Additional Information: Open access funding provided by Vienna University of Economics and Business (WU). This article was generously supported by SAIA and OeAD, Action Austria-Slovakia, Cooperation in research and education, project No. 2014-10-15-0005, and by the research project OP Vzdelavanie (OP Education): Increasing the quality of doctoral studies and support of the international research at the FNE, University of Economics in Bratislava (ITMS 26140230005). The project was co-financed by the European Union.
Keywords: Health care; Entry models; Competition; Regulation; Transition economies
Classification Codes: JEL I11; I18; L22; D22
Depositing User: ePub Administrator
Date Deposited: 14 Feb 2018 11:47
Last Modified: 14 Feb 2018 12:14
Related URLs:
URI: http://epub.wu.ac.at/id/eprint/6063

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