Antitrust & Competition Policy Blog

Editor: D. Daniel Sokol
University of Florida
Levin College of Law

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Thursday, May 16, 2013

Differential market entry determinants for for-profit and nonprofit long-term care providers

Posted by D. Daniel Sokol

Katsuyoshi Nakazawa (University of Toyo) explores Differential market entry determinants for for-profit and nonprofit long-term care providers.

ABSTRACT: This study considers market entry determinants for both for-profit and non-profit at-home longterm care providers in Japan. It examines market structure incentives and barriers to entry using a panel dataset of 48 Japanese municipalities for the 2003–2011 period. Estimation results show that forprofits and non-profits face different determinants of entry. Potential for-profit entrants are sensitive to profit considerations and therefore adapt to the market structure and clear barriers to entry. However, potential non-profits with preferential tax treatment and the constraint of non-distribution of profits enter disadvantaged municipalities. Both profits and non-profits have become integrated in Japanese at-home care markets.

http://lawprofessors.typepad.com/antitrustprof_blog/2013/05/differential-market-entry-determinants-for-for-profit-and-nonprofit-long-term-care-providers.html

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