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Altruism heterogeneity, quality competition and horizontal differentiation among healthcare providers

Author

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  • Nadja Kairies-Schwarz

    (Institute for Health Services Research and Health Economics, Heinrich-Heine-University Düsseldorf)

Abstract

Recent empirical evidence shows substantial altruism heterogeneity among healthcare providers. Spurred by this evidence, we build a quality competition model with altruism heterogeneity among healthcare providers that also endogenously determine the degree of horizontal differentiation within the healthcare provision market. We find that relatively more altruistic healthcare providers treat more patients and provide higher quality per patient. In addition, we show that when healthcare providers endogenously choose their location, the more altruistic provider locates more centrally. In terms of specialization this indicates that more altruistic providers can afford to engage in less horizontal differentiation.

Suggested Citation

  • Nadja Kairies-Schwarz, 2023. "Altruism heterogeneity, quality competition and horizontal differentiation among healthcare providers," Economics Bulletin, AccessEcon, vol. 43(2), pages 1143-1154.
    • Handle: RePEc:ebl:ecbull:eb-22-00526
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    File URL: http://www.accessecon.com/Pubs/EB/2023/Volume43/EB-23-V43-I2-P95.pdf
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    References listed on IDEAS

    as
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    JEL classification:

    • I1 - Health, Education, and Welfare - - Health
    • D4 - Microeconomics - - Market Structure, Pricing, and Design

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