Networks and Queues: Evidence from Medical Referrals in Canada
When prices are fixed, queues become central allocation mechanisms. Yet decentralized waiting queues are often unobserved, creating inefficiencies and the opportunity for informal access through referral networks. This paper studies a 2016 reform in Quebec, Canada, that introduced a centralized system for allocating medical referrals from general practitioners to physician specialists. We find that centralization significantly reduced new specialist consultations. We also infer physician referral networks and estimate a structural model that enables us to conclude that specialists tend to defer consultations for patients referred by general practitioners from whom they receive an unusually large number of referrals.
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