This file is part of IDEAS, which uses RePEc data


[ Papers | Articles | Software | Books | Chapters | Authors | Institutions | JEL Classification | NEP reports | Search | New papers by email | Author registration | Rankings | Volunteers | FAQ | Blog | Help! ]

The industrial organization of health care markets

In: Handbook of Health Economics

Author info | Abstract | Publisher info | Download info | Related research | Statistics
Author Info
Dranove, David
Satterthwaite, Mark A.
Abstract

Health care markets fail to satisfy many requirements for perfect competition, including large numbers of consumers and firms, zero search costs, and marketability of all goods and services. Over time, health care markets have evolved to overcome the resulting inefficiencies. We combine the theory of agency with a model of monopolistic competition to explore three regimes of health care organization that were dominant at different points in time: (1) independent physicians and cost-based reimbursement for hospitals; (2) regulation; and (3) managed care. Each regime represents, for its time, a sensible response to market failure. Each regime has predictable consequences for prices, costs, and quality. We examine the theoretical arguments and review the empirical evidence about each regime. A consistent message emerges: Providers respond to economic incentives in a manner consistent with theory.

Download Info
To download:

If you experience problems downloading a file, check if you have the proper application to view it first. Information about this may be contained in the File-Format links below. In case of further problems read the IDEAS help file. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL: http://www.sciencedirect.com/science/article/B7P5R-4FF8276-11/2/3fbe6edef564656f0e10932b0c086e1e
File Format:
File Function:
Download Restriction: Full text for ScienceDirect subscribers only

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.

Publisher Info
Download reference. The following formats are available: HTML, plain text, BibTeX, RIS (EndNote), ReDIF
This chapter was published in: A. J. Culyer & J. P. Newhouse (ed.) Handbook of Health Economics, , chapter 20, pages 1093-1139, 2000.

This item is provided by Elsevier in its series Handbook of Health Economics with number 1-20.

Handle: RePEc:eee:heachp:1-20

Contact details of provider:
Web page: http://www.elsevier.com/wps/find/bookseriesdescription.cws_home/BS_HE/description

For technical questions regarding this item, or to correct its listing, contact: (Heidi Boesdal).

Related research
This chapter was published in the following book, which is listed on IDEAS:
A. J. Culyer & J. P. Newhouse (ed.), 2000. "Handbook of Health Economics," Handbook of Health Economics, Elsevier, edition 1, volume 1, number 1. [Downloadable!] (restricted)
Keywords:

Find related papers by JEL classification:
I1 - Health, Education, and Welfare - - Health

Statistics
Access and download statistics

Did you know? Data contributors to RePEc receive monthly emails with details about downloads and abstract views of their works.

This page was last updated on 2008-8-11.


This information is provided to you by IDEAS at the Department of Economics, College of Liberal Arts and Sciences, University of Connecticut using RePEc data on a server sponsored by the Society for Economic Dynamics.