scholarly journals Growth and survival: The moderating effects of local agglomeration and local market structure

2014 ◽  
Vol 37 (3) ◽  
pp. 541-564 ◽  
Author(s):  
Aviad Pe'er ◽  
Ilan Vertinsky ◽  
Thomas Keil
Keyword(s):  
Market Structure ◽  
Local Market ◽  
Moderating Effects ◽  
Growth And Survival

scholarly journals Local market structure in a Hotelling town

2016 ◽  
Vol 3 (1) ◽  
pp. 75-100
Author(s):  
Alberto A. Pinto ◽  
João P. Almeida ◽  
Telmo Parreira
Keyword(s):  
Market Structure ◽  
Local Market

scholarly journals Local market structure in a Hotelling town

2016 ◽  
Vol 3 (1) ◽  
pp. 75-100 ◽  
Author(s):  
Alberto A. Pinto ◽  
João P. Almeida ◽  
Telmo Parreira
Keyword(s):  
Market Structure ◽  
Local Market

scholarly journals Strategic Management in Local Hospital Markets: Service Duplication or Service Differentiation

2020 ◽  
Author(s):  
Hanh Q. Trinh
Keyword(s):  
Market Structure ◽  
Market Competition ◽  
The United States ◽  
Service Differentiation ◽  
Strategic Decision ◽  
High Tech ◽  
Local Market ◽  
Dyadic Relationship ◽  
American Hospital ◽  
Size Asymmetry

Abstract Background: The purpose of this study is to assess the influences of market structure on hospitals’ strategic decision to duplicate or differentiate services and to assess the relationship of duplication and differentiation to hospital performance. This study is different from previous research because it examines how a hospital decides which services to be duplicated or differentiated in a dyadic relationship embedded in a complex competitive network. Methods: We use Linear Structural Equations (LISREL) to simultaneously estimate the relationships among market structure, duplicated and differentiated services, and performance. All non-federal, general acute hospitals in urban counties in the United States with more than one hospital are included in the sample (n=1726). Forty-two high-tech services are selected for the study. Data are compiled from the American Hospital Association Annual Survey of Hospitals, Area Resource File, and CMS cost report files. State data from HealthLeaders-InterStudy for 2015 are also used.Results: The findings provide support that hospitals duplicate and differentiate services relative to rivals in a local market. Size asymmetry between hospitals is related to both service duplication (negatively) and service differentiation (positively). With greater size asymmetry, a hospital utilizes its valuable resources for its own advantage to thwart competition from rivals by differentiating more high-tech services and reducing service duplication. Geographic distance is positively related to service duplication, with duplication increasing as distance between hospitals increases. Market competition is associated with lower service duplication. Both service differentiation and service duplication are associated with lower market share, higher costs, and lower profits. Conclusions: The findings underscore the role of market structure as a check and balance on the provision of high-tech services. Hospital management should consider cutting back some services that are oversupplied and/or unprofitable and analyze the supply and demand in the market to avoid overdoing both service duplication and service differentiation.

The Effects of Chains on the Measurement of Competition in the Nursing Home Industry

2017 ◽  
Vol 76 (3) ◽  
pp. 315-336 ◽  
Author(s):  
Richard A. Hirth ◽  
Qing Zheng ◽  
David C. Grabowski ◽  
David G. Stevenson ◽  
Orna Intrator ◽  
...  
Keyword(s):  
United States ◽  
Nursing Home ◽  
Nursing Homes ◽  
Market Structure ◽  
Market Power ◽  
The United States ◽  
Local Market ◽  
Common Ownership ◽  
Fixed Radius

Consistently accounting for more than 50% of the nursing homes in the United States, corporate chains have played an important role in the industry for several decades. However, few studies have explicitly considered the role of chains in measuring competition in nursing home markets. In this study, we use a newly developed database tracking common ownership over a period of nearly two decades to compare chain-adjusted and unadjusted measures of competition at the county and 25 km fixed-radius levels and explore how the differences would affect the assessment of local market structure. On average, the chain-adjusted Herfindahl–Hirschman Indexes (HHIs) are about 0.02 higher than the unadjusted HHIs. Each year, about 20% to 22% of the counties would appear more concentrated when recalculating HHIs accounting for common ownership. Evidence suggests that nursing home chains tend to focus more on expanding access to new markets within a state than to increasing market power within a smaller local market.

scholarly journals Strategic management in local hospital markets: service duplication or service differentiation

2020 ◽  
Vol 20 (1) ◽  
Author(s):  
Hanh Q. Trinh
Keyword(s):  
Market Structure ◽  
Market Competition ◽  
The United States ◽  
Service Differentiation ◽  
Strategic Decision ◽  
High Tech ◽  
Local Market ◽  
Dyadic Relationship ◽  
American Hospital ◽  
Size Asymmetry

Abstract Background The purpose of this study is to assess the influences of market structure on hospitals’ strategic decision to duplicate or differentiate services and to assess the relationship of duplication and differentiation to hospital performance. This study is different from previous research because it examines how a hospital decides which services to be duplicated or differentiated in a dyadic relationship embedded in a complex competitive network. Methods We use Linear Structural Equations (LISREL) to simultaneously estimate the relationships among market structure, duplicated and differentiated services, and performance. All non-federal, general acute hospitals in urban counties in the United States with more than one hospital are included in the sample (n = 1726). Forty-two high-tech services are selected for the study. Data are compiled from the American Hospital Association Annual Survey of Hospitals, Area Resource File, and CMS cost report files. State data from HealthLeaders-InterStudy for 2015 are also used. Results The findings provide support that hospitals duplicate and differentiate services relative to rivals in a local market. Size asymmetry between hospitals is related to both service duplication (negatively) and service differentiation (positively). With greater size asymmetry, a hospital utilizes its valuable resources for its own advantage to thwart competition from rivals by differentiating more high-tech services and reducing service duplication. Geographic distance is positively related to service duplication, with duplication increasing as distance between hospitals increases. Market competition is associated with lower service duplication. Both service differentiation and service duplication are associated with lower market share, higher costs, and lower profits. Conclusions The findings underscore the role of market structure as a check and balance on the provision of high-tech services. Hospital management should consider cutting back some services that are oversupplied and/or unprofitable and analyze the supply and demand in the market to avoid overdoing both service duplication and service differentiation.

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