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Bundling in General Markets and in Health Care Systems

Author

Listed:
  • Dassiou, Xeni
  • Glycopantis, Dionysius
  • Stavropoulou, Charitini

Abstract

This paper provides an overview of bundling, by explaining, in general, the different forms that this practice can take in selling, buying or exchanging goods. We then proceed with a linear programming formulation in health care, to explain how the price of a bundle of resources can be calculated. We follow this by looking at the specific case of the practice of bundling by Medicare, the social insurance system for health care in the United States. We consider its advantages, disadvantages, and various recommendations.

Suggested Citation

  • Dassiou, Xeni & Glycopantis, Dionysius & Stavropoulou, Charitini, 2009. "Bundling in General Markets and in Health Care Systems," The Journal of Economic Asymmetries, Elsevier, vol. 6(2), pages 47-68.
    • Handle: RePEc:eee:joecas:v:6:y:2009:i:2:p:47-68
    DOI: 10.1016/j.jeca.2009.02.006
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    References listed on IDEAS

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    1. Crampes, Claude & Hollander, Abraham, 2005. "Product specification, multi-product screening and bundling: the case of pay TV," Information Economics and Policy, Elsevier, vol. 17(1), pages 35-59, January.
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    More about this item

    Keywords

    C61; D4; I11; I18; Monopoly; Monopsony; Barter exchange; Price discrimination; Bundling; Pure bundling; Mixed bundling; Bundle price; Quality uncertainty; Adverse selection; Profit enhancing; Trade enhancing; Legal and regulatory systems; Linear programming; Primal and dual problems; Health care systems; Health insurance; Medicare;
    All these keywords.

    JEL classification:

    • C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis
    • D4 - Microeconomics - - Market Structure, Pricing, and Design
    • I11 - Health, Education, and Welfare - - Health - - - Analysis of Health Care Markets
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health

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