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Lessons from Game Theory about Healthcare System Price Inflation

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  • Mark Agee
  • Zane Gates

Abstract

Consistent with game theory predictions, the more cooperative alternative pricing framework benefits all parties by producing substantially lower administrative costs along with higher profit margins for the providers and the insurer. With insurance premiums tied to consumers’ risk-reducing behaviours, the cost of insurance likewise decreases for both the consumer and the insurer. Copyright Springer International Publishing Switzerland 2013

Suggested Citation

  • Mark Agee & Zane Gates, 2013. "Lessons from Game Theory about Healthcare System Price Inflation," Applied Health Economics and Health Policy, Springer, vol. 11(1), pages 45-51, February.
    • Handle: RePEc:spr:aphecp:v:11:y:2013:i:1:p:45-51
    DOI: 10.1007/s40258-012-0003-z
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    References listed on IDEAS

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    1. Vaithianathan, Rhema, 2002. "Will Subsidising Private Health Insurance Help the Public Health System?," The Economic Record, The Economic Society of Australia, vol. 78(242), pages 277-283, September.
    2. Vaithianathan, Rhema, 2006. "Health insurance and imperfect competition in the health care market," Journal of Health Economics, Elsevier, vol. 25(6), pages 1193-1202, November.
    3. Chiu, W. Henry, 1997. "Health insurance and the welfare of health care consumers," Journal of Public Economics, Elsevier, vol. 64(1), pages 125-133, April.
    4. Martin Gaynor & Deborah Haas-Wilson & William B. Vogt, 2000. "Are Invisible Hands Good Hands? Moral Hazard, Competition, and the Second-Best in Health Care Markets," Journal of Political Economy, University of Chicago Press, vol. 108(5), pages 992-1005, October.
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    2. Quan-Hoang Vuong & Tung-Manh Ho & Hong-Kong Nguyen & Thu-Trang Vuong, 2018. "Healthcare consumers’ sensitivity to costs: a reflection on behavioural economics from an emerging market," Palgrave Communications, Palgrave Macmillan, vol. 4(1), pages 1-10, December.

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