Exclusionary Equilibria in Health-Care Markets
AbstractWe have demonstrated that when providers of health insurance are perceived to be differentiated by consumers, circumstances may arise under which they find it advantageous to restrict the set of health-care providers that they approve to their customers. Even if all health-care providers are equally qualified and efficient, payers may choose to contract with a selected subset of them in order to secure more favorable contract terms. Moreover, in a concentrated health-care market that consists of two health insurance companies (payers) and two health-care providers (hospitals), both payers may choose to contract with only one of the hospitals while excluding the other completely from the market. When consumers' valuation of an extended choice of providers is small in comparison with the extent of differentiation that exists between the payers, such an exclusionary outcome is the unique equilibrium of the game. Copyright (c) 1997 Massachusetts Institute of Technology.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by Wiley Blackwell in its journal Journal of Economics & Management Strategy.
Volume (Year): 6 (1997)
Issue (Month): 1 (03)
Contact details of provider:
Web page: http://www.kellogg.northwestern.edu/research/journals/JEMS/
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Bardey, D. & Bommier, A. & Jullien, B., 2010.
"Retail price regulation and innovation: Reference pricing in the pharmaceutical industry,"
Journal of Health Economics,
Elsevier, vol. 29(2), pages 303-316, March.
- Bardey, David & Bommier, Antoine & Jullien, Bruno, 2009. "Retail Price Regulation and Innovation: Reference Pricing in the Pharmaceutical Industry," IDEI Working Papers 432, Institut d'Économie Industrielle (IDEI), Toulouse.
- Bardey, David & Bommier, Antoine & Jullien, Bruno, 2009. "Retail Price Regulation and Innovation: Reference Pricing in the Pharmaceutical Industry," TSE Working Papers 09-026, Toulouse School of Economics (TSE).
- Katherine Ho, 2009.
"Insurer-Provider Networks in the Medical Care Market,"
American Economic Review,
American Economic Association, vol. 99(1), pages 393-430, March.
- Katherine Ho, 2005. "Insurer-Provider Networks in the Medical Care Market," NBER Working Papers 11822, National Bureau of Economic Research, Inc.
- Martin Gaynor & Deborah Haas-Wilson, .
"Change, Consolidation, and Competition in Health Care Markets,"
GSIA Working Papers
1999-E31, Carnegie Mellon University, Tepper School of Business.
- Martin Gaynor & Deborah Haas-Wilson, 1999. "Change, Consolidation, and Competition in Health Care Markets," Journal of Economic Perspectives, American Economic Association, vol. 13(1), pages 141-164, Winter.
- Martin Gaynor & Deborah Haas-Wilson, 1998. "Change, Consolidation, and Competition in Health Care Markets," NBER Working Papers 6701, National Bureau of Economic Research, Inc.
- Martin Gaynor & Deborah Haas-Wilson, 1998. "Change, Consolidation, and Competition in Health Care Markets," HEW 9809001, EconWPA.
- Bourgeon, Jean-Marc & Picard, Pierre & Pouyet, Jerome, 2008. "Providers' affiliation, insurance and collusion," Journal of Banking & Finance, Elsevier, vol. 32(1), pages 170-186, January.
- Luigi Siciliani & Anderson Stanciole, 2013.
"Bargaining and the provision of health services,"
The European Journal of Health Economics,
Springer, vol. 14(3), pages 391-406, June.
- David Bardey & Jean-Charles Rochet, 2009.
"Competition among health plans: a two-sided market approach,"
DOCUMENTOS DE TRABAJO
005217, UNIVERSIDAD DEL ROSARIO.
- David Bardey & Jean-Charles Rochet, 2010. "Competition Among Health Plans: A Two-Sided Market Approach," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 19(2), pages 435-451, 06.
- Martin Gaynor & Robert J Town, 2012.
"Competition in Health Care Markets,"
The Centre for Market and Public Organisation
12/282, Department of Economics, University of Bristol, UK.
- repec:mop:credwp:04.05.45 is not listed on IDEAS
- Robert Somogyi, 2013. "Bertrand-Edgeworth competition with substantial product differentiation," IEHAS Discussion Papers 1332, Institute of Economics, Centre for Economic and Regional Studies, Hungarian Academy of Sciences.
- Martin Gaynor & William B. Vogt, 1999.
"Antitrust and Competition in Health Care Markets,"
NBER Working Papers
7112, National Bureau of Economic Research, Inc.
- Town, Robert & Vistnes, Gregory, 2001. "Hospital competition in HMO networks," Journal of Health Economics, Elsevier, vol. 20(5), pages 733-753, September.
- Ariel Pakes, 2008. "Theory and Empirical Work on Imperfectly Competitive Markets," NBER Working Papers 14117, National Bureau of Economic Research, Inc.
- Martin Gaynor & Kate Ho & Robert Town, 2014. "The Industrial Organization of Health Care Markets," NBER Working Papers 19800, National Bureau of Economic Research, Inc.
- Baranes, E. & Bardey, D., 2004.
"Competition in Health Care Markets and Vertical Restraints,"
Cahiers du LASER (LASER Working Papers)
2004.13, LASER (Laboratoire de Science Economique de Richter), Faculty of Economics, University of Montpellier 1.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Wiley-Blackwell Digital Licensing) or (Christopher F. Baum).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.