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Selecting Negotiation Processes with Health Care

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Author Info
Xavier Martinez-Giralt ()
Pedro Pita Barros

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Abstract

We address the question of how a third-party payer (e.g. an insurer) decides what providers to contract with. Three different mechanisms are studied and their properties compared. A first mechanism consists in the third-party payer setting up a bargaining procedure with both providers jointly and simultaneously. A second mechanism envisages the outcome of the same simultaneous bargaining but independently with every provider. Finally, the last mechanism is of different nature. It is the so-called "any willing provider" where the third-party payer announces a contract and every provider freely decides to sign it or not. The main finding is that the decision of the third-party payer depends on the surplus to be shared. When it is relatively high the third-party payer prefers the any willing provider system. When, on the contrary, the surplus is relatively low, the third-party payer will select one of the other two systems accor ing to how bargaining power is distributed.

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Publisher Info
Paper provided by Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC) in its series UFAE and IAE Working Papers with number 467.00.

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Length: 29
Date of creation: 05 Nov 2000
Date of revision:
Handle: RePEc:aub:autbar:467.00

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Phone: 34 93 592 1203
Web page: http://pareto.uab.cat
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Related research
Keywords: Health Care Provision; Any Willing Provider; Bargaining;

Find related papers by JEL classification:
I12 - Health, Education, and Welfare - - Health - - - Health Production
I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

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    Other versions:
  2. Jofre-Bonet, Mireia, 2000. "Health care: private and/or public provision," European Journal of Political Economy, Elsevier, vol. 16(3), pages 469-489, September. [Downloadable!] (restricted)
  3. Fingleton, John & Raith, Michael, 2001. "Open Covenants, Privately Arrived At," CEPR Discussion Papers 2709, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
  4. Sutton, John, 1986. "Non-cooperative Bargaining Theory: An Introduction," Review of Economic Studies, Blackwell Publishing, vol. 53(5), pages 709-24, October. [Downloadable!] (restricted)
  5. Jun, Byoung Heon, 1989. "Non-cooperative Bargaining and Union Formation," Review of Economic Studies, Blackwell Publishing, vol. 56(1), pages 59-76, January. [Downloadable!] (restricted)
  6. Paul Heidhues, 2000. "Employers’ Associations, Industry-wide Unions, and Competition," CIG Working Papers FS IV 00-11, Wissenschaftszentrum Berlin (WZB), Research Unit: Competition and Innovation (CIG). [Downloadable!]
  7. Martin J. Osborne & Ariel Rubinstein, 2005. "Bargaining and Markets," Levine's Bibliography 666156000000000515, UCLA Department of Economics. [Downloadable!]
  8. Antoni Calvó-Armengol, 2002. "On bargaining partner selection when communication is restricted," International Journal of Game Theory, Springer, vol. 30(4), pages 503-515. [Downloadable!] (restricted)
  9. Glazer, Jacob & Glazer, Jacob & McGuire, Thomas G., 1993. "Should physicians be permitted to 'balance bill' patients?," Journal of Health Economics, Elsevier, vol. 12(3), pages 239-258, October. [Downloadable!] (restricted)
  10. Martinez-Giralt, Xavier & Pita Barros, Pedro Luis, 2000. "Public and Private Provision of Health Care," CEPR Discussion Papers 2491, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
    Other versions:
  11. Horn, Henrik & Wolinsky, Asher, 1988. "Worker Substitutability and Patterns of Unionisation," Economic Journal, Royal Economic Society, vol. 98(391), pages 484-97, June. [Downloadable!] (restricted)
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Pedro Barros & Xavier Martinez-Giralt, 2005. "Negotiation Advantages of Professional Associations in Health Care," International Journal of Health Care Finance and Economics, Springer, vol. 5(2), pages 191-204, June. [Downloadable!] (restricted)
    Other versions:
  2. Barros Pedro Pita & Xavier Martinez-Giralt, 2005. "Bargaining and idle public sector capacity in health care," Economics Bulletin, Economics Bulletin, vol. 9(5), pages 1-8. [Downloadable!]
  3. Luigi Siciliani & Anderson Stanciol, 2008. "Bargaining and the Provision of Health Services," Discussion Papers 08/28, Department of Economics, University of York. [Downloadable!]
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