NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH
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Somalee Banerjee

Neerman Research
H-38 Jangpura Extension
New Delhi, N/A 110014
India

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Institutional Affiliation: Neerman Research

NBER Working Papers and Publications

November 2019Does The Market Reward Quality?: Evidence from India
with Zachary Wagner, Manoj Mohanan, Neeraj Sood: w26460
There are two salient facts about health care in low and middle-income countries; 1) the private sector plays an important role and 2) the care provided is often of poor quality. Despite these facts we know little about what drives quality of care in the private sector and why patients continue to seek care from poor quality providers. We use two field studies in India that provide unique insight into this issue. First, we use a discrete choice experiment to show that patients are willing to pay higher prices for better technical quality (defined by correct treatment and correct diagnosis). Second, we use standardized patients to show that private providers who provide better technical quality are not able to charge higher prices. Instead providers are able to charge higher prices for elem...
 
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