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Competition in Health Care Markets and Vertical Restraints

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Author Info

  • Baranes, E.
  • Bardey, D.

Abstract

This paper studies competition between Managed Care Organizations (MCOs) and “Conventional Insurers”. Most of the time, MCOs sign exclusive contracts with providers and these vertical restrictions associated to differentiation in the providers'market imply a risk segmentation. Taking into account this phenomenon, we show that vertical restrictions in the health insurance sector can paradoxically create an “anti-raise rivals cost effect” in which MCOs. penetration allows to decrease conventional insurers premiums.

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File URL: http://www.creden.univ-montp1.fr/downloads/cahiers/CC-04-05-45.pdf
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Bibliographic Info

Paper provided by CREDEN (Centre de Recherche en Economie et Droit de l'Energie), Faculty of Economics, University of Montpellier 1 in its series Cahiers du CREDEN (CREDEN Working Papers) with number 04.05.45.

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Length: 20 pages
Date of creation: 2004
Date of revision:
Handle: RePEc:mop:credwp:04.05.45

Contact details of provider:
Postal: Université de Montpellier 1, Faculté des Sciences Economiques, CREDEN, Rue Raymond Dugrand - Espace Richter, CS 79606, 34960 Montpellier Cedex 2, France
Phone: 33 (0)4 67 15 83 60
Fax: 33 (0)4 67 15 84 04
Web page: http://www.creden.univ-montp1.fr
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Related research

Keywords: VERTICAL RESTRAINTS; MANAGED CARE; COMPETITION POLICY.;

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Cited by:
  1. Martin Gaynor & Robert J. Town, 2011. "Competition in Health Care Markets," NBER Working Papers 17208, National Bureau of Economic Research, Inc.

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