IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Login to save this paper or follow this series

Public and Private Firms Competition in a Vertical Differentiation Setting – The Case of Healthcare Industry

  • Cristina Barbot

    ()

    (CETE, Faculdade de Economia, Universidade do Porto)

  • António Brandão

    ()

    (CETE, Faculdade de Economia, Universidade do Porto)

With the recent wave of privatisation and liberalisation the number of state owned firms has remarkably decreased. In some industries, namely in healthcare and education, and in many countries, they go on playing an important role, alone or competing with private ones. In this paper we use a model of vertical differentiation to study the effects of the presence of public firms on the quality of healthcare and on welfare. We conclude that, when the market is covered, there must be at least one public firm so that equilibrium welfare may be positive. When the market is not covered, we show that a public monopoly is socially better than a private one, but the only possible competition is between private firms.

To our knowledge, this item is not available for download. To find whether it is available, there are three options:
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a search for a similarly titled item that would be available.

Paper provided by Universidade do Porto, Faculdade de Economia do Porto in its series CEF.UP Working Papers with number 0507.

as
in new window

Length: 22 pages
Date of creation: Dec 2005
Date of revision:
Handle: RePEc:por:cetedp:0507
Contact details of provider: Postal: Rua Dr. Roberto Frias, 4200 PORTO
Phone: 351-22-5571100
Fax: 351-22-5505050
Web page: http://www.fep.up.pt/
Email:


More information through EDIRC

No references listed on IDEAS
You can help add them by filling out this form.

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:por:cetedp:0507. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Ana Bonanca)

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.