competition and market power in option demand markets cory capps david dranove mark satterthwaite september 17 2002 abstract managed care is the dominant organizational form for delivery of health today united states an example a with intermediaries sell networks suppliers to consumers who are uncertain about their needs key function serve consolidate exert countervailing against supplier grants intermediary discount order be admitted its network gain access have enrolled it this paper proposes measure that individual possess we call willingness pay wtp employing logit model among discrete set derive formula aggregate retain given seller validate by considering purchases hospital services using 1991 data on inpatient san diego california find highly correlated profits from illustrate three applications
