Author(s):
Brekke, Kurt R. 
; Siciliani, Luigi ; Straume, Odd Rune
Date: 2008
Persistent ID: http://hdl.handle.net/1822/7715
Origin: RepositóriUM - Universidade do Minho
Subject(s): Hospital; Competition; Quality
Document details
Hospital competition and quality with regulated prices
Description
We analyse the effect of competition on quality in hospital market with regulated prices, considering both the effect of free patient choice (monopoly versus competition) and increased competition through lower transportation costs (increased substitutability). With partially altruistic providers and a convex cost function that is non-separable in activity and quality, we show - in both cases - that the effect is generally ambiguous. In contrast to the received theoretical literature, this is consistent with, and potentially explains, the mixed empirical evidence.
We analyse the effect of competition on quality in hospital market with regulated prices, considering both the effect of free patient choice (monopoly versus competition) and increased competition through lower transportation costs (increased substitutability). With partially altruistic providers and a convex cost function that is non-separable in activity and quality, we show - in both cases - that the effect is generally ambiguous. In contrast to the received theoretical literature, this is consistent with, and potentially explains, the mixed empirical evidence.
Document Type
Research paper
Language English
Language English
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