Variable meaning

Variable expression

Estimate

Negotiation mechanism

Random error term

${\sigma }_v$

0.9291

Patient bargaining power

${\sigma }_u$

0.5329

Physician bargaining power

${\sigma }_w$

1.0484

Variance Analysis

The total variance of random items

${\sigma }_v^2+{\sigma }_u^2+{\sigma }_w^2$

2.2465

Overall effect of Asymmetric information

$\left({\sigma }_u^2+{\sigma }_w^2\right)/\left({\sigma }_v^2+{\sigma }_u^2+{\sigma }_w^2\right)$

61.57%

Patient bargaining influence

${\sigma }_u^2/\left({\sigma }_u^2+{\sigma }_w^2\right)$

20.53%

Physician bargaining influence

${\sigma }_w^2/\left({\sigma }_u^2+{\sigma }_w^2\right)$

79.47%

Net effect of bargaining

${\sigma }_w-{\sigma }_u$

51.55%