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Activity Number:
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507
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Type:
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Contributed
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Date/Time:
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Thursday, August 2, 2007 : 8:30 AM to 10:30 AM
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Sponsor:
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Business and Economics Statistics Section
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| Abstract - #310282 |
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Title:
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A Semiparametric Approach To Estimate the Disagreement Prices Between the Hospitals and Insurers
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Author(s):
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Sreenivas Konda*+
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Companies:
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Temple University
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Address:
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203C Speakman Hall, Philadelphia, PA, 19122,
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Keywords:
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Lognormal ; Extreme order statistics ; Surgery prices
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Abstract:
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The asymptotic distribution of the extreme order statistics of lognormal distribution is well known Gumbel distribution. However it is anything like Gumbel in the large enough sample case because of the slow convergence rate. In this paper theoretical and empirical evidence is provided for the slow convergence rate and recommendations are made to improve this rate. The findings of this research are applied to estimate the extremal prices of a narrowly defined surgical procedure: the minimum price a hospital is willing to accept and the maximum price an insurance provider is willing to pay. These extremal prices are then exploited to understand the bargaining power of hospitals in some metropolitan regions with different insurance providers.
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