Working Paper Series, Swedish Institute for Social Research, Stockholm University
No 5/2004:
Testing for Price Leadership and for Reputation Goods Effects: Swedish Dental Services
Rickard Eriksson ()
Abstract: Sweden deregulated the prices for dental services in 1999.
Twenty-one Swedish county councils provide public dental services. They
compete with 3000 small independent private firms. Public and private
providers are subsidized by the government to an equal extent, but most of
the costs are borne by the consumers. The private firms’ price setting is
strongly influenced by the county councils’ prices after the deregulation,
i.e. the county councils act as price leaders. Prices increased more in
large markets, which is consistent with dental services being a reputation
good. There was no effect of the dentist’s gender on prices, but immigrant
dentists increased their prices slightly less than native ones.
Keywords: dental services; price leadership; reputation goods; (follow links to similar papers)
JEL-Codes: I11; L11; L13; (follow links to similar papers)
19 pages, October 11, 2004
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