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The Dynamics of Disease in a Regulated Vertically Differentiated Health System

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  • L. Lambertini
  • A. Tampieri

Abstract

We build up a differential game to investigate the interplay between the quality of health care and the presence of an evolving disease in a duopoly where patients are heterogeneous along the income dimension. We prove unicity, stability and perfection of the open-loop Nash solution. Moreover, we identify the admissible parameter region wherein price regulation achieves the twofold objectives of ensuring cares to all patients and eradicating the disease.

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Bibliographic Info

Paper provided by Dipartimento Scienze Economiche, Universita' di Bologna in its series Working Papers with number wp737.

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Date of creation: Mar 2011
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Handle: RePEc:bol:bodewp:wp737

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