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Competition or Coordination in Hospital Markets with Unionised Labour

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  • Kurt R. Brekke

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Abstract

This paper study labour market responses to hospital mergers. The market consists of two hospitals providing horizontally and vertically differentiated services. Hospitals compete either in price and quality or just in quality (non-price competition). To provide medical care, hospitals employ health care workers (e.g., physicians, nurses). The workers collectively bargain wages either at a central level, firm level or plant level. Anticipating wage responses, hospitals decide whether or not to merge. The main finding is that the bargaining structure, the nature of competition and the patient copayment rate have a crucial impact on the profitability of hospital mergers.

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Bibliographic Info

Article provided by Springer in its journal International Journal of Health Care Finance and Economics.

Volume (Year): 4 (2004)
Issue (Month): 1 (03)
Pages: 65-89

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Handle: RePEc:kap:ijhcfe:v:4:y:2004:i:1:p:65-89

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Web page: http://www.springerlink.com/link.asp?id=106603

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Cited by:
  1. Herr, Annika, 2010. "Quality and welfare in a mixed duopoly with regulated prices: The case of a public and a private hospital," DICE Discussion Papers 07, Heinrich‐Heine‐Universität Düsseldorf, Düsseldorf Institute for Competition Economics (DICE).
  2. Luciano Fanti & Nicola Meccheri, 2014. "Capacity choice and welfare under alternative unionisation structures," Discussion Papers 2014/176, Dipartimento di Economia e Management (DEM), University of Pisa, Pisa, Italy.
  3. Nicola Meccheri & Luciano Fanti, 2012. "Managerial Delegation Schemes in a Duopoly with Endogenous Production Costs: A Comparison of Sales and Relative Profit Delegation under Centralised Unionisation," Working Paper Series 44_12, The Rimini Centre for Economic Analysis.
  4. Brekke, Kurt R. & Siciliani, Luigi & Straume, Odd Rune, 2014. "Hospital Mergers with Regulated Prices," Discussion Paper Series in Economics 21/2014, Department of Economics, Norwegian School of Economics.
  5. Luciano Fanti & Nicola Meccheri, 2013. "Managerial Delegation under Alternative Unionization Structures," LABOUR, CEIS, vol. 27(1), pages 38-57, 03.
  6. Luciano Fanti & Nicola Meccheri, 2012. "Price competition, merger and welfare under firm-specific unions: on the role of unions’ preference towards wages," Discussion Papers 2012/136, Dipartimento di Economia e Management (DEM), University of Pisa, Pisa, Italy.
  7. Brekke, Kurt R. & Siciliani, Luigi & Straume, Odd Rune, 2014. "Horizontal Mergers and Product Quality-," Discussion Paper Series in Economics 4/2014, Department of Economics, Norwegian School of Economics.
  8. Luciano Fanti & Nicola Meccheri, 2013. "Non-rigid wages and merger profitability reversal under convex costs and centralised unionisation," Discussion Papers 2013/167, Dipartimento di Economia e Management (DEM), University of Pisa, Pisa, Italy.
  9. Luciano Fanti & Nicola Meccheri, 2012. "Differentiated Duopoly and Horizontal Merger Profitability under Monopoly Central Union and Convex Costs," Working Paper Series 05_12, The Rimini Centre for Economic Analysis.
  10. Kurt R. Brekke & Lars Sørgard, 2006. "Public versus Private Health Care in a National Health Service," CESifo Working Paper Series 1679, CESifo Group Munich.
  11. Fanti, Luciano & Meccheri, Nicola, 2014. "Profits and competition under alternative technologies in a unionized duopoly with product differentiation," Research in Economics, Elsevier, vol. 68(2), pages 157-168.
  12. Luciano Fanti & Nicola Meccheri, 2012. "Merger results under price competition and plant-specific unions," Discussion Papers 2012/135, Dipartimento di Economia e Management (DEM), University of Pisa, Pisa, Italy.
  13. Kurt R. Brekke & Luigi Siciliani & Odd Rune Straume, 2014. "Hospital Mergers with Regulated Prices," NIPE Working Papers 10/2014, NIPE - Universidade do Minho.
  14. Herr, Annika, 2009. "Product differentiation and welfare in a mixed duopoly with regulated prices: the case of a public and a private hospital," IWQW Discussion Paper Series 08/2009, Friedrich-Alexander-Universität Erlangen-Nürnberg, Institut für Wirtschaftspolitik und Quantitative Wirtschaftsforschung (IWQW).

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