Competition and Market Power in Option Demand Markets
研究中介机构向不确定需求的消费者销售供应商网络的市场，提出衡量供应商市场势力的指标，并用圣地亚哥医院服务数据验证，最后分析医院合并案例。
We call markets in which intermediaries sell networks of suppliers to consumers who are uncertain about their needs "option demand markets." In these markets, suppliers may grant the intermediaries discounts in order to be admitted to their networks. We derive a measure of each supplier's market power within the network; the measure is based on the additional ex ante expected utility consumers obtain from the supplier's inclusion. We empirically validate the WTP measure by considering managed care purchases of hospital services in the San Diego market. Finally, we present three applications, including an analysis of hospital mergers in San Diego.