A problem with consumer surplus measures of the cost of practice variations

David Dranove

doi:10.1016/0167-6296(95)00005-3

A problem with consumer surplus measures of the cost of practice variations

David Dranove^*

^*Corresponding author for this work

Strategy

Research output: Contribution to journal › Article › peer-review

5 Scopus citations

Abstract

Estimates of the surplus loss due to physician practice variation measure the area under the 'shifted' demand curve. This method is valid only if the unshifted demand curve is derived from the distribution of true (ex post) values of care. If the unshifted demand curve does not reflect the true value of care, then the traditional methods of measuring surplus loss can be seriously biased.

Original language	English (US)
Pages (from-to)	243-251
Number of pages	9
Journal	Journal of Health Economics
Volume	14
Issue number	2
DOIs	https://doi.org/10.1016/0167-6296(95)00005-3
State	Published - Jun 1995

Keywords

Consumer surplus
Medical demand
Medical practice variations

ASJC Scopus subject areas

Health Policy
Public Health, Environmental and Occupational Health

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