We develop a model of competition in prices and infrastructural investment among mobile network providers. Market shares and service quality (download speed) are simultaneously determined, for demand affects the network load just as delivered quality affects consumer demand. While consolidation typically has adverse impacts on consumer surplus, economies of scale, which we derive from physical principles, push in the other direction. We find that consumer surplus is maximized at a relatively high number of firms, and that the optimal number of firms is higher for lower-income consumers. Total surplus, meanwhile, is maximized at a moderate number of firms. Our modeling framework allows us to quantify the marginal social value of allocating more spectrum to mobile telecommunications, finding it is roughly five times an individual firm’s willingness to pay for a marginal unit of spectrum.
Capacity Payments and Renewable Energy Investment
Patient-Specific Information and New Drug Adoption: Evidence from Digital Health
With the rise of digital health technologies, health care professionals increasingly have access to detailed real-time data on their patients. We evaluate to what extent access by physicians to this patient-specific information leads to more efficient patient-drug matches, especially in the context of the introduction of new drugs. To do so, we use data on hemophiliacs from a digital health app that allows patients to record treatments and symptoms (bleeding). A unique feature of our data is that we observe whether physicians access patient information and what information they observe. We leverage this aspect of the data to establish how patient information about drugs’ effects influences own prescriptions and the adoption of new drugs, which vary in effectiveness and in the rate of adoption. Additionally, we examine how the information diffuses across patients common to a physician and also within physicians’ social networks. We find that patient-specific information has a significant effect on the probability of adoption of new drugs and that there are large spillover effects across a physician’s patients as well as within physicians’ social networks.
Hospital Choice and Optimal Capacity with Queues for Medical Care