Design of Online Healthcare Platforms: Motivating Doctors and Benefiting Patients

52 Pages Posted: 18 Nov 2021

See all articles by Qiyuan Wang

Qiyuan Wang

Assistant Professor of Marketing

Charles Weinberg

University of British Columbia (UBC)

Chunhua Wu

University of British Columbia (UBC) - Sauder School of Business

Date Written: November 3, 2021

Abstract

Online health has emerged as a critical component of the healthcare system. This paper empirically investigates how online health platforms create value for patients and doctors and explore how market designs influence value creation. We develop a structural demand and supply model for an online health market that is characterized by patients' trade-offs between service price and quality as well as doctors' endogenous decisions of the service price and quality, driven by both their pro-social and monetary incentives. Applying the proposed model to a large dataset from a leading Chinese online health consultation platform, we recover patients' preference for the service quality and price sensitivity as well as doctors' heterogeneous pro-social and monetary incentives. Counterfactual analysis suggests that a two-point uniform pricing policy performs better in increasing patients' healthcare accessibility, reducing accessibility inequity, and improving patients' and doctors' payoffs than the current individually-determined pricing strategy and a uniform low pricing strategy.

Keywords: online health, monetary incentive, pro-social incentive, health consultation, platform markets

Suggested Citation

Wang, Qiyuan and Weinberg, Charles and Wu, Chunhua, Design of Online Healthcare Platforms: Motivating Doctors and Benefiting Patients (November 3, 2021). Available at SSRN: https://ssrn.com/abstract=3955410 or http://dx.doi.org/10.2139/ssrn.3955410

Qiyuan Wang (Contact Author)

Assistant Professor of Marketing ( email )

Li Ka Shing Tower
The Hong Kong Polytechnic University
Hong Kong, Hung Hom, Kowloon M801
China

Charles Weinberg

University of British Columbia (UBC) ( email )

2329 West Mall
Vancouver, British Columbia BC V6T 1Z4
Canada

Chunhua Wu

University of British Columbia (UBC) - Sauder School of Business ( email )

2053 Main Mall
Vancouver, BC V6T 1Z2
Canada

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