We study the effect of Internet diffusion on childbirth procedures performed in England between 2000 and 2011. We show that broadband Internet access increased cesarean sections (C-sections): mothers living in areas with better Internet access are 2.5% more likely to obtain a C-section. The effect is driven by first-time mothers who are 6% more likely to obtain a C-section. The increased C-section rate is not accompanied by changes in health care outcomes; thus health care costs increased with no corresponding medical benefits. We show evidence documenting the growing importance of the Internet as a source of health-related information.

Choice in public services is controversial. We exploit a reform in the English National Health Service to assess the effect of removing constraints on patient choice. We estimate a demand model that explicitly captures the removal of the choice constraints imposed on patients. We find that, post-removal, patients became more responsive to clinical quality. This led to a modest reduction in mortality and a substantial increase in patient welfare. The elasticity of demand faced by hospitals increased substantially post- reform and we find evidence that hospitals responded to the enhanced incentives by improving quality. This suggests greater choice can raise quality.