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Hotelling competition on quality in the health care market

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Montefiori, Marcello ()

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Abstract

This paper aims to theoretically analyse recent health system reforms. Generally patients are free to choose, within the region they live in, the best provider among the private "accredited" and public ones. The criterion patients use to choose the provider which fits their expectations best is not, at least in a tax financed system, the price of the treatment since patients do not pay directly for the treatment they receive. Crucial in determining their choice is the quality level and the provider spatial location. In a normative perspective we want to analyse hospitals' Nash/Counot and Stackelberg equilibriums in a Hotelling spatial competition scenario. Because of asymmetric information, patients could be unable to observe the true quality provided. Thus the demand for health care services is assumed to depend on a perceived quality (different from true quality). New equilibrium outcomes are investigated when patient choice is affected by uncertainty.

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Publisher Info
Paper provided by Department of Public Policy and Public Choice - POLIS in its series P.O.L.I.S. department's Working Papers with number 33.

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Length: 34 pages
Date of creation: Feb 2003
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Handle: RePEc:uca:ucapdv:33

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Find related papers by JEL classification:
I11 - Health, Education, and Welfare - - Health - - - Analysis of Health Care Markets
L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets

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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.:
  1. Marchese, Carla & Privileggi, Fabio, 2001. "Who participates in tax amnesties? Self-selection of risk-averse taxpayers," P.O.L.I.S. department's Working Papers 21, Department of Public Policy and Public Choice - POLIS. [Downloadable!]
  2. Montrucchio, Luigi & Privileggi, Fabio, 1999. "On Fragility of Bubbles in Equilibrium Asset Pricing Models of Lucas-Type," P.O.L.I.S. department's Working Papers 5, Department of Public Policy and Public Choice - POLIS. [Downloadable!]
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  3. Marchese, Carla & Privileggi, Fabio, 1999. "Taxpayers Attitudes Toward Risk and Amnesty Participation: Economic Analysis and Evidence for the Italian Case," P.O.L.I.S. department's Working Papers 6, Department of Public Policy and Public Choice - POLIS. [Downloadable!]
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