Competition in Health Care Markets and Vertical Restraints
This paper studies competition between Managed Care Organizations (MCOs) and Conventional Insurers. Most of the time, MCOs sign exclusive contracts with providers and these vertical restrictions associated to differentiation in the providers’ market imply a risk segmentation. Taking into account this phenomenon, we show that vertical restrictions in the health insurance sector can paradoxically create an anti-raise rivals’ cost effect in which MCOs’ penetration allows to decrease conventional insurers’ premiums.
|Date of creation:||2004|
|Date of revision:|
|Contact details of provider:|| Postal: LASER, Faculté d'Economie, Avenue Raymond Dugrand, CS 79606, 34960 MONTPELLIER Cedex 2, France|
Web page: http://www.laser.univ-montp1.fr
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