Advertisement

Review of Industrial Organization

, Volume 45, Issue 4, pp 325–344 | Cite as

Economics at the FTC: Office Supply Retailers Redux, Healthcare Quality Efficiencies Analysis, and Litigation of an Alleged Get-Rich-Quick Scheme

  • Keith Brand
  • Martin GaynorEmail author
  • Patrick McAlvanah
  • David Schmidt
  • Elizabeth Schneirov
Article

Abstract

We discuss in this essay three of the matters on which economists in the Bureau of Economics (BE) at the Federal Trade Commission have worked this past year. BE revisited familiar ground in the first matter, a proposed merger of office supply retailers. The second part of the essay considers efficiency claims in health care mergers, with focus on the acquisition of a physician group by a health care system in Idaho. The final part of the essay discusses empirical work that was undertaken by the Bureau to investigate claims made by marketers of an alleged get-rich-quick scheme.

Keywords

Antitrust Consumer protection Fraud FTC  Healthcare Retailing 

Notes

Acknowledgments

We thank Michael Vita for helpful comments. The views expressed in this article are those of the authors and do not necessarily reflect those of the Federal Trade Commission or any of the individual Commissioners.

References

  1. Ashenfelter, O., Ashmore, D., Baker, J. B., Gleason, S., & Hosken, D. S. (2006). Empirical methods in merger analysis: Econometric analysis of pricing in FTC v. Staples. International Journal of the Economics of Business, 13(2), 265–279.CrossRefGoogle Scholar
  2. Berwick, D. M., Nolan, T. W., & Whittington, J. (2008). The triple aim: Care, health, and cost. Health Affairs, 27(3), 759–769.CrossRefGoogle Scholar
  3. Brill, J. (2014). Competition in health care markets. Retrieved September 10, 2014 from Federal Trade Commission Web site: http://www.ftc.gov/public-statements/2014/06/competition-health-care-markets-keynote-address-julie-brill.
  4. Carlson, J., Dafny, L., Freeborn, B., Ippolito, P., & Wendling, B. (2013). Economics at the FTC: Physician acquisitions, standard essential patents, and accuracy of credit reporting. Review of Industrial Organization, 43(4), 303–326.CrossRefGoogle Scholar
  5. DellaVigna, S., & Malmendier, U. (2006). Paying not to go to the gym. The American Economic Review, 96, 694–719.CrossRefGoogle Scholar
  6. Farrell, J., Balan, D., Brand, K., & Wendling, B. (2011). Economics at the FTC: Hospital mergers, authorized generic drugs, and consumer credit markets. Review of Industrial Organization, 39(4), 271–294.CrossRefGoogle Scholar
  7. Feinstein, D. (2014). Antitrust enforcement in health care: Proscription, not prescription. Retrieved September 10, 2014 from Federal Trade Commission Web site: http://www.ftc.gov/system/files/documents/public_statements/409481/140619_aco_speech.pdf.
  8. Federal Trade Commission. (2007, July). Credit-based insurance scores: Impacts on consumers of automobile insurance. Retrieved September 10, 2014 from Federal Trade Commission Web site: http://www.ftc.gov/os/2007/07/P044804FACTA_Report_Credit-Based_Insurance_Scores.pdf.
  9. Federal Trade Commission. (2011). Authorized generic drugs: Short-term effects and long-term impact. Retrieved September 10, 2014 from Federal Trade Commission Web site: http://www.ftc.gov/os/2011/08/2011genericdrugreport.pdf.
  10. Federal Trade Commission. (2014a, March). Self-Regulation in the Alcohol Industry: Report of the Federal Trade Commission. Retrieved September 10, 2014 from Federal Trade Commission Web site: http://www.ftc.gov/system/files/documents/reports/self-regulation-alcohol-industry-report-federal-trade-commission/140320alcoholreport.pdf.
  11. Federal Trade Commission. (2014b, March). Competition and the regulation of advanced practice nurses. Retrieved September 10, 2014 from Federal Trade Commission Web site: http://www.ftc.gov/system/files/documents/reports/policy-perspectives-competition-regulation-advanced-practice-nurses/140307aprnpolicypaper.pdf.
  12. Federal Trade Commission & Department of Justice. (2014c, May). Hart–Scott–Rodino annual report, fiscal year 2013. Retrieved September 10, 2014 from Federal Trade Commission Web site: http://www.ftc.gov/system/files/documents/reports/36th-report-fy2013/140521hsrreport.pdf.
  13. Gaynor, M. (2007). Competition and quality in health care markets. Boston: Now Publishers.Google Scholar
  14. Gaynor, M. (2014a). Health law and antitrust. New York Times, Letter to the Editor, February 17, 2014. Retrieved September 10, 2014 from the New York Times Web site: http://www.nytimes.com/2014/02/18/opinion/health-law-and-antitrust.html.
  15. Gaynor, M. (2014b). Competition policy in health care markets: Navigating the enforcement and policy maze. Health Affairs, 10, 1377.Google Scholar
  16. Gaynor, M., Seider, H., & Vogt, W. B. (2005). The volume-outcome effect, scale economies, and learning-by-doing. American Economic Review, 95, 243–247.CrossRefGoogle Scholar
  17. Gaynor, M., & Town, R. (2012). The impact of hospital consolidation-update. Princeton: The Synthesis Project, Robert Wood Johnson Foundation.Google Scholar
  18. Gowrisankaran, G., & Town, R. J. (2003). Competition, payers, and hospital quality. Health Services Research, 38(6p1), 1403–1422.CrossRefGoogle Scholar
  19. Halm, E. A., Lee, C., & Chassin, M. R. (2002). Is volume related to outcome in health care? A systematic review and methodologic critique of the literature. Annals of Internal Medicine, 137(6), 511–520.CrossRefGoogle Scholar
  20. Ho, V., Town, R. J., & Heslin, M. J. (2007). Regionalization versus competition in complex cancer surgery. Health Economics, Policy and Law, 2(01), 51–71.CrossRefGoogle Scholar
  21. Hussey, P. S., Wertheimer, S., & Mehrotra, A. (2013). The association between health care quality and cost: A systematic review. Annals of Internal Medicine, 158(1), 27–34.CrossRefGoogle Scholar
  22. Jha, A. K., Perlin, J. B., Kizer, K. W., & Dudley, R. A. (2003). Effect of the transformation of the Veterans Affairs Health Care System on the quality of care. New England Journal of Medicine, 348(22), 2218–2227.CrossRefGoogle Scholar
  23. L&M Policy Research. (2013). Evaluation of CMMI accountable care organization initiatives, contract HHSM-500-2011-0009/HHSM-500-T0002. Retrieved September 10, 2014 from CMS Web site:http://innovation.cms.gov/Files/reports/PioneerACOEvalReport1.pdf.
  24. Murphy, K. (2007). Expert report of Kevin M. Murphy, Ph.D. Retrieved September 10, 2014 from Federal Trade Commission Web site: http://www.ftc.gov/sites/default/files/documents/cases/2007/08/070823murphy.pdf.
  25. O’Donoghue, T., & Rabin, M. (1999). Doing it now or later. American Economic Review, 89, 103–124.CrossRefGoogle Scholar
  26. Pate, D. (2013). The trial, and why it matters. Retrieved September 10, 2014 from St. Luke’s Web site: http://drpate.stlukesblogs.org/2013/09/21/the-trial-and-why-it-matters/.
  27. Romano, P. S., & Balan, D. J. (2011). A retrospective analysis of the clinical quality effects of the acquisition of Highland Park hospital by Evanston Northwestern healthcare. International Journal of the Economics of Business, 18(1), 45–64.CrossRefGoogle Scholar
  28. U.S. Department of Justice & the Federal Trade Commission. (2010). Horizontal merger guidelines. Retrieved September 10, 2014 from Federal Trade Commission Web site: http://www.ftc.gov/os/2010/08/100819hmg.pdf.
  29. Valentino-DeVries, J., Singer-Vine, J., & Soltani, A. (2012). Websites vary prices, deals based on users’ information. Wall Street Journal, 10, 60–68.Google Scholar
  30. Vogt, W.B., & Town, R. J. (2006). How has hospital consolidation affected the price and quality of hospital care? Research Synthesis Report No. 9. Princeton, NJ: Robert Wood Johnson Foundation.Google Scholar
  31. World Health Organization. (2008). Integrated health services—What and why? Technical Brief No. 1.Google Scholar

Copyright information

© Springer Science+Business Media New York (outside the USA)  2014

Authors and Affiliations

  • Keith Brand
    • 1
  • Martin Gaynor
    • 1
    • 2
    Email author
  • Patrick McAlvanah
    • 1
  • David Schmidt
    • 1
  • Elizabeth Schneirov
    • 1
  1. 1.Federal Trade CommissionBureau of EconomicsWashingtonUSA
  2. 2.H. John Heinz III CollegeCarnegie Mellon UniversityPittsburghUSA

Personalised recommendations