IDEAS home Printed from https://ideas.repec.org/a/gam/jijerp/v19y2022i5p2800-d760363.html
   My bibliography  Save this article

Optimal Subsidy Support for the Provision of Elderly Care Services in China Based on the Evolutionary Game Analysis

Author

Listed:
  • Qiang Mu

    (School of Management, Northwestern Polytechnical University, Xi’an 710072, China)

  • Peng Guo

    (School of Management, Northwestern Polytechnical University, Xi’an 710072, China)

  • Ding Wang

    (School of Management, Northwestern Polytechnical University, Xi’an 710072, China)

Abstract

Public–private partnership is a type of cooperation that has been widely employed to alleviate contradictions between supply and demand in the elderly care industry in China. Based on evolutionary game theory, this paper mainly analyzes the effects of static subsidy and dynamic subsidy to private sectors and consumers on the evolution of the decision process for private investors, consumers, and government in the three-dimension system. The simulation results show that without active supervision, a higher subsidy to private sectors will not promote the provision of high-quality services when the cost saving is large. Furthermore, there exists a threshold value of the difference between the two types of subsidies such that elderly people will be encouraged to choose institutional care if the value exceeds the threshold. We also find that dynamic subsidy policy works more efficiently in promoting the provision of home-based care services.

Suggested Citation

  • Qiang Mu & Peng Guo & Ding Wang, 2022. "Optimal Subsidy Support for the Provision of Elderly Care Services in China Based on the Evolutionary Game Analysis," IJERPH, MDPI, vol. 19(5), pages 1-20, February.
    • Handle: RePEc:gam:jijerp:v:19:y:2022:i:5:p:2800-:d:760363
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/1660-4601/19/5/2800/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/1660-4601/19/5/2800/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Guang Zhu & Hu Liu & Mining Feng, 2018. "An Evolutionary Game-Theoretic Approach for Assessing Privacy Protection in mHealth Systems," IJERPH, MDPI, vol. 15(10), pages 1-27, October.
    2. Leporatti Lucia & Montefiori Marcello, 2020. "The Challenge of Organizing Elderly Care Programmes: Optimal Policy Design under Complete and Asymmetric Information," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 20(1), pages 1-15, January.
    3. repec:hhs:iuiwop:487 is not listed on IDEAS
    4. Jorgen W. Weibull, 1997. "Evolutionary Game Theory," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262731215, December.
    5. Yakita, Akira, 2020. "Economic development and long-term care provision by families, markets and the state," The Journal of the Economics of Ageing, Elsevier, vol. 15(C).
    6. Jiahuan He & Xinggang Luo & Zhongliang Zhang & Yang Yu, 2021. "Strategic Analysis of Participants in the Provision of Elderly Care Services—An Evolutionary Game Perspective," IJERPH, MDPI, vol. 18(16), pages 1-27, August.
    7. Jean-Jacques Laffont & Jean Tirole, 1993. "A Theory of Incentives in Procurement and Regulation," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262121743, December.
    8. Qixiang Wang & Linghui Kong & Jin Li & Bangyi Li & Fan Wang, 2020. "Behavioral Evolutionary Analysis between the Government and Uncertified Recycler in China’s E-Waste Recycling Management," IJERPH, MDPI, vol. 17(19), pages 1-15, October.
    9. Zhang, Hao & Wang, Mingyue & Cheng, Zhixuan & Wan, Ling, 2020. "Technology-sharing strategy and incentive mechanism for R&D teams of manufacturing enterprises," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 555(C).
    10. Kuhn, Michael & Nuscheler, Robert, 2011. "Optimal public provision of nursing homes and the role of information," Journal of Health Economics, Elsevier, vol. 30(4), pages 795-810, July.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Butkus Mindaugas & Rakauskiene Ona Grazina & Bartuseviciene Ilona & Stasiukynas Andrius & Volodzkiene Lina & Dargenyte-Kacileviciene Laura, 2023. "Measuring quality perception of public services: customer-oriented approach," Engineering Management in Production and Services, Sciendo, vol. 15(2), pages 96-116, June.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Zhiyong Zhang & Xiaodie Song & Yongqiang Shi, 2023. "Evolutionary Game Analysis of Behavior Strategies of Multiple Stakeholders in an Elderly Care Service System," IJERPH, MDPI, vol. 20(5), pages 1-22, February.
    2. Jiahuan He & Xinggang Luo & Zhongliang Zhang & Yang Yu, 2021. "Strategic Analysis of Participants in the Provision of Elderly Care Services—An Evolutionary Game Perspective," IJERPH, MDPI, vol. 18(16), pages 1-27, August.
    3. Guy Meunier & Ingmar Schumacher, 2020. "The importance of considering optimal government policy when social norms matter for the private provision of public goods," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 22(3), pages 630-655, June.
    4. Dufwenberg, Martin, 1997. "Some relationships between evolutionary stability criteria in games," Economics Letters, Elsevier, vol. 57(1), pages 45-50, November.
    5. Klein, Michael, 1996. "Competition in network industries," Policy Research Working Paper Series 1591, The World Bank.
    6. Rodrigo M. S. Moita & Claudio Paiva, 2013. "Political Price Cycles in Regulated Industries: Theory and Evidence," American Economic Journal: Economic Policy, American Economic Association, vol. 5(1), pages 94-121, February.
    7. MARINI, Marco, 1996. "Property Rights and Market : Employee Privatization as a Cooperative Bargaining Process," LIDAM Discussion Papers CORE 1996023, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    8. Henrekson, Magnus & Johansson, Dan, 2010. "Firm Growth, Institutions and Structural Transformation," Ratio Working Papers 150, The Ratio Institute.
    9. Lichi Zhang & Yanyan Jiang & Junmin Wu, 2022. "Evolutionary Game Analysis of Government and Residents’ Participation in Waste Separation Based on Cumulative Prospect Theory," IJERPH, MDPI, vol. 19(21), pages 1-16, November.
    10. Simon P. Anderson & Régis Renault, 2011. "Price Discrimination," Chapters, in: André de Palma & Robin Lindsey & Emile Quinet & Roger Vickerman (ed.), A Handbook of Transport Economics, chapter 22, Edward Elgar Publishing.
    11. Dionne, G. & Doherty, N., 1991. "Adverse Selection In Insurance Markets: A Selective Survey," Cahiers de recherche 9105, Centre interuniversitaire de recherche en économie quantitative, CIREQ.
    12. David Martimort & Flavio Menezes & Myrna Wooders & ELISABETTA IOSSA & DAVID MARTIMORT, 2015. "The Simple Microeconomics of Public-Private Partnerships," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 17(1), pages 4-48, February.
    13. Tom Johnston & Michael Savery & Alex Scott & Bassel Tarbush, 2023. "Game Connectivity and Adaptive Dynamics," Papers 2309.10609, arXiv.org, revised Nov 2023.
    14. Bassanini, Anna & Pouyet, Jerome, 2005. "Strategic choice of financing systems in regulated and interconnected industries," Journal of Public Economics, Elsevier, vol. 89(2-3), pages 233-259, February.
    15. Josse Delfgaauw & Robert Dur, 2008. "Incentives and Workers' Motivation in the Public Sector," Economic Journal, Royal Economic Society, vol. 118(525), pages 171-191, January.
    16. Daron Acemoglu & Amy Finkelstein, 2008. "Input and Technology Choices in Regulated Industries: Evidence from the Health Care Sector," Journal of Political Economy, University of Chicago Press, vol. 116(5), pages 837-880, October.
    17. Agiakloglou, Christos & Gkouvakis, Michail, 2015. "Causal interrelations among market fundamentals: Evidence from the European Telecommunications sector," The Quarterly Review of Economics and Finance, Elsevier, vol. 55(C), pages 150-159.
    18. Lehmann, Markus A., 2002. "Error minimization and deterrence in agency control," International Review of Law and Economics, Elsevier, vol. 21(4), pages 373-391, May.
    19. Strausz, Roland, 2006. "Deterministic versus stochastic mechanisms in principal-agent models," Journal of Economic Theory, Elsevier, vol. 128(1), pages 306-314, May.
    20. Urrunaga, Roberto & Aparicio, Carlos, 2012. "Infrastructure and economic growth in Peru," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), August.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jijerp:v:19:y:2022:i:5:p:2800-:d:760363. See general information about how to correct material in RePEc.

    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 CitEc recognized a bibliographic reference but did not link an item in RePEc 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.