Restoring vision to consumers and competition to the marketplace: analyzing the effects of required prescription release

Autor:	Edward Timmons, Conor Norris
Rok vydání:	2020
Předmět:	Economics and Econometrics Occupational licensing business.industry Vendor 020209 energy media_common.quotation_subject 05 social sciences Economic rent Advertising 02 engineering and technology Professional writing Fairness to Contact Lens Consumers Act Competition (economics) Health care 0502 economics and business 0202 electrical engineering electronic engineering information engineering Economics Business 050207 economics Medical prescription Public finance media_common
Zdroj:	Journal of Regulatory Economics. 57:1-19
ISSN:	1573-0468 0922-680X
DOI:	10.1007/s11149-020-09399-9
Popis:	Occupational licensing laws can allow professionals to extract rents in the marketplace. In the case of vision services, optometrists have the authority to write prescriptions for contact lenses. Optometrists may choose to conceal this information and force patients to purchase lenses from the professional writing the prescription—resulting in vendor lock-in. In this paper, we investigate the possible effect of the 2004 Fairness to Contact Lens Consumers Act (FCLCA) on the market for vision services by examining state differences in prescription release mandates before 2004. We find that requiring professionals to release prescription information to patients resulted in a 10 to 11 percent reduction in the wages of optometrists. Our results provide some evidence that the FCLCA may have increased consumer welfare by reducing the prices of contact lenses or increasing access to contact lenses.
Databáze:	OpenAIRE
Externí odkaz:	https://explore.openaire.eu/search/publication?articleId=doi_dedup___::8d29b03b523babb346786214fab3b4dd https://doi.org/10.1007/s11149-020-09399-9 Zobrazit plný text záznamu Plný text ve formátu PDF Plný text ve formátu HTML
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