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Asymmetric Information and the Demand for Health Care - the Case of Double Moral Hazard

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Author Info
Udo Schneider (University of Bayreuth)

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Abstract

The production of health does not only depend on the medical services supplied by the physi-cian but is also influenced by the patient’s compliance. A model of medical treatment is pre-sented in which both the actions of physician and patient are modeled as a productive input. The analysis distinguishes between three cases of strategic interaction. The consequences of asymmetric information between physician and patient are lower activity levels, only in the case of strategic substitutes the result might change. Furthermore, the effects of the implementation of a demand-side coinsurance are discussed.

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Publisher Info
Paper provided by EconWPA in its series HEW with number 0409001.

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Length: 24 pages
Date of creation: 27 Sep 2004
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Handle: RePEc:wpa:wuwphe:0409001

Note: Type of Document - pdf; pages: 24
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Web page: http://129.3.20.41

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Related research
Keywords: principal-agent theory; double moral hazard; strategic interaction; compliance;

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Find related papers by JEL classification:
I - Health, Education, and Welfare
D - Microeconomics

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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. Ellis, Randall P. & McGuire, Thomas G., 1990. "Optimal payment systems for health services," Journal of Health Economics, Elsevier, vol. 9(4), pages 375-396, December. [Downloadable!] (restricted)
  2. Sugato Bhattacharyya & Francine Lafontaine, 1995. "Double-Sided Moral Hazard and the Nature of Share Contracts," RAND Journal of Economics, The RAND Corporation, vol. 26(4), pages 761-781, Winter. [Downloadable!] (restricted)
  3. Börsch-Supan, Axel, 1998. "Anreizprobleme in der Renten- und Krankenversicherung," Sonderforschungsbereich 504 Publications 98-44, Sonderforschungsbereich 504, Universität Mannheim & Sonderforschungsbereich 504, University of Mannheim.
  4. Ellis, Randall P & McGuire, Thomas G, 1993. "Supply-Side and Demand-Side Cost Sharing in Health Care," Journal of Economic Perspectives, American Economic Association, vol. 7(4), pages 135-51, Fall. [Downloadable!] (restricted)
  5. Dionne, Georges & Contandriopoulos, Andre-Pierre, 1985. "Doctors and their workshops : A review article," Journal of Health Economics, Elsevier, vol. 4(1), pages 21-33, March. [Downloadable!] (restricted)
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  6. Russell Cooper & Thomas W. Ross, 1985. "Product Warranties and Double Moral Hazard," RAND Journal of Economics, The RAND Corporation, vol. 16(1), pages 103-113, Spring. [Downloadable!] (restricted)
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  7. David M. Cutler & Richard J. Zeckhauser, 1999. "The Anatomy of Health Insurance," NBER Working Papers 7176, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  8. Blomqvist, Ake, 1991. "The doctor as double agent: Information asymmetry, health insurance, and medical care," Journal of Health Economics, Elsevier, vol. 10(4), pages 411-432. [Downloadable!] (restricted)
  9. Gaynor, Martin, 1994. "Issues in the Industrial Organization of the Market for Physician Services," Journal of Economics & Management Strategy, Blackwell Publishing, vol. 3(1), pages 211-55, Spring.
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  10. Ma, Ching-to Albert & McGuire, Thomas G, 1997. "Optimal Health Insurance and Provider Payment," American Economic Review, American Economic Association, vol. 87(4), pages 685-704, September. [Downloadable!] (restricted)
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  11. Jeremy I. Bulow & John Geanakoplos & Paul D. Klemperer, 1983. "Multimarket Oligopoly," Cowles Foundation Discussion Papers 674, Cowles Foundation, Yale University. [Downloadable!]
  12. Yavas, Abdullah, 1995. "Seller-Broker Relationship as a Double Moral Hazard Problem," Journal of Housing Economics, Elsevier, vol. 4(3), pages 244-263, September. [Downloadable!] (restricted)
  13. Selden, Thomas M., 1990. "A model of capitation," Journal of Health Economics, Elsevier, vol. 9(4), pages 397-409, December. [Downloadable!] (restricted)
  14. Kim, Son Ku & Wang, Susheng, 1998. "Linear Contracts and the Double Moral-Hazard," Journal of Economic Theory, Elsevier, vol. 82(2), pages 342-378, October. [Downloadable!] (restricted)
Full references

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. Udo Schneider, 2005. "Asymmetric Information and Outcome-based Compensation in Health Care – Theoretical Implications," HEW 0501006, EconWPA. [Downloadable!]
  2. Schneider, Udo & Zerth, Jürgen, 2008. "Improving prevention compliance through appropriate incentives," MPRA Paper 8280, University Library of Munich, Germany. [Downloadable!]
  3. Udo Schneider & Volker Ulrich, 2005. "The Physician-Patient Relationship Revisited - the Patient's View," HEW 0505001, EconWPA. [Downloadable!]
    Other versions:
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