Competition, Equity and Quality in HealthCare
AbstractIn this paper we focus on the implications of consumer heterogeneity for whether competition will improve outcomes in health care markets. We show that competition generally favours the majority group as higher quality for the majority is an effective way to increase the quality signal and attract patients. A regulator who is concerned about equity may protect the minority group by not introducing competition. Alternatively, if the minority group is favoured by the providers under monopoly, competition can improve equity by forcing the providers to increase quality for the majority group.
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Bibliographic InfoPaper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 9325.
Date of creation: Jan 2013
Date of revision:
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Find related papers by JEL classification:
- D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
- H11 - Public Economics - - Structure and Scope of Government - - - Structure and Scope of Government
- I11 - Health, Education, and Welfare - - Health - - - Analysis of Health Care Markets
- I14 - Health, Education, and Welfare - - Health - - - Health and Inequality
- L31 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Nonprofit Institutions; NGOs
This paper has been announced in the following NEP Reports:
- NEP-ALL-2013-04-13 (All new papers)
- NEP-COM-2013-04-13 (Industrial Competition)
- NEP-HEA-2013-04-13 (Health Economics)
- NEP-IAS-2013-04-13 (Insurance Economics)
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