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Price Regulation and Health Care with Disease Dynamics

Author

Listed:
  • Luca Lambertini

    (University of Bologna)

  • Alessandro Tampieri

    (University of Luxembourg)

Abstract

We build up a differential game to investigate the interplay between the quality of health care and the presence of an evolving disease in a duopoly where patients are heterogeneous along the income dimension. We study the Markov perfect equilibrium, and we identify the admissible parameter region wherein price regulation achieves the twofold objectives of ensuring cares to all patients and heal all of them.

Suggested Citation

  • Luca Lambertini & Alessandro Tampieri, 2015. "Price Regulation and Health Care with Disease Dynamics," Review of Economic Analysis, Digital Initiatives at the University of Waterloo Library, vol. 7(2), pages 157-172, December.
  • Handle: RePEc:ren:journl:v:7:y:2015:i:2:p:157-172
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    More about this item

    Keywords

    health care markets; quality; dynamic games;
    All these keywords.

    JEL classification:

    • C73 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Stochastic and Dynamic Games; Evolutionary Games
    • H42 - Public Economics - - Publicly Provided Goods - - - Publicly Provided Private Goods
    • I11 - Health, Education, and Welfare - - Health - - - Analysis of Health Care Markets
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets

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