Fee-based membership free shipping is an important shipping fee schedule in E-Commerce. This paper studies how the membership free shipping (MFS) program affects firm competition and how to set the membership fee optimally. We find MFS relaxes price competition. The firm that adopts MFS has a higher pricing band than the other firm. Both firms have positive profits, strictly better than when me...

Medicare has begun to implement a new payment system for physician services; the system's cornerstone is a resource-based relative value scale (RBRVS) that divides physician services into three components--physician work, practice expense, and malpractice insurance--and calculates a relative value for each component. The relative values for the components are adjusted for geographic differences...

A prevalent market structure in the Internet economy consists of buyers and sellers connected by a platform (such as Amazon or eBay) that acts as an intermediary and keeps a share of the revenue of each transaction. While the optimal mechanism that maximizes the intermediary’s profit in such a setting may be quite complicated, the mechanisms observed in reality are generally much simpler, e.g.,...

The California Department of Industrial Relations asked RAND to examine the feasibility and appropriateness of including procedures that are typically performed only in an inpatient setting on the workers' compensation Official Medical Fee Schedule for ambulatory surgical center facility fees. The authors used interviews, literature review, and data analysis to assemble information on the requi...

This final rule makes several changes affecting Medicare Part B payment. The changes include: implementation of resource-based malpractice insurance relative value units (RVUs); refinement of resource-based practice expense RVUs; payment for physician pathology and independent laboratory services; discontinuous anesthesia time; diagnostic tests; prostate screening; use of CPT modifier -25; qual...

Chairman Johnson and members of the committee, I appreciate the opportunity to appear before you today to discuss the geographic practice costs adjustment in the Medicare Physician Fee Schedule. My name is Stephen Zuckerman and I am a Principal Research Associate at the Urban Institute, a non-profit, non-partisan research institute located in Washington, D.C. Along with Gregory Pope at the Cent...

Korean National Health Insurance (NHI) was established during only 12 yr from its inception (1977-1989), providing universal medical coverage to the entire nation and making a huge contribution to medical security. However, the program now faces many challenges in terms of sustainability. The low birth rates, aging population, low economic growth, and escalating demands for welfare, as well as ...

A key element of the business structure for electronic markets is the design of price schedules for transaction services. Stock exchanges and transaction service providers around the world regard transaction fees not only as a major source of income but also as an incentive mechanism for investors. In this paper, we discuss the principles of nonlinear transaction fee schedules and present the r...

Under the new fee schedule, Medicare physician fees are 76 percent of private fees. Consistent with the intent of payment reform, Medicare physician fees more closely approximate private fees for visits (93 percent) than for surgery (51 percent) and in rural areas as compared with large metropolitan areas. Variation in private fees across the country is considerably greater than it is for Medic...