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Information Presentation and Consumer Choice: Evidence from Assisted Reproductive Technology (ART) Success Rates Reports
Information Presentation and Consumer Choice: Evidence from Assisted Reproductive Technology (ART) Success Rates Reports
Tuesday, June 14, 2016
Lobby (Annenberg Center)
Prior literature on quality disclosure focuses on whether information provision affects consumer choice and health care quality; yet little is known about the effect of information presentation on choice and quality in health care report cards. This paper examines how a format change of the Assisted Reproductive Technology (ART) reports affects consumer choice. Using panel data on clinic quality and market share from the 1993-2006 ART reports, we find that after the first version of quality report was released in 1998, when both “success rate” and “multiple-birth rate” were reported but only “success rate” was highlighted, consumers responded to “success rate” but not “multiple-birth rate;” after the second version was released in 2004, when “singleton success rate” was added and highlighted, consumers started to favor clinics with lower “multiple-birth rate.” This paper provides the first exploration of the effect of information presentation in a health care reporting system. Our findings suggest that proper design of information presentation is crucial in determining the effectiveness of public reporting.