P4P, Reputation and the Reduction of Costly Overprovision
We investigate the effect of reputational motivation on output in a scenario of overprovision of medical treatment. We assume that physicians differ in their degree of altruism, enjoy being perceived as good but dislike being perceived as greedy. We show that better reputational motivation unambiguously reduces the costs of healthcare provision and the magnitude of overprovision which in turn rises patient benefits.
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- Le Grand, Julian, 2003. "Motivation, Agency, and Public Policy: Of Knights and Knaves, Pawns and Queens," OUP Catalogue, Oxford University Press, number 9780199266999, December.
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UWEC-2003-35-P, University of Washington, Department of Economics.
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- Glazer, Jacob & McGuire, Thomas G. & Newhouse, Joseph P., 2007. "Using performance measures to motivate `report-averse' and `report-loving' agents," Journal of Health Economics, Elsevier, vol. 26(6), pages 1170-1189, December.
- David Dranove & Daniel Kessler & Mark McClellan & Mark Satterthwaite, 2002.
"Is More Information Better? The Effects of 'Report Cards' on Health Care Providers,"
NBER Working Papers
8697, National Bureau of Economic Research, Inc.
- David Dranove & Daniel Kessler & Mark McClellan & Mark Satterthwaite, 2003. "Is More Information Better? The Effects of "Report Cards" on Health Care Providers," Journal of Political Economy, University of Chicago Press, vol. 111(3), pages 555-588, June.
- Ellis, Randall P. & McGuire, Thomas G., 1986. "Provider behavior under prospective reimbursement : Cost sharing and supply," Journal of Health Economics, Elsevier, vol. 5(2), pages 129-151, June.
- Siciliani, Luigi, 2009. "Paying for performance and motivation crowding out," Economics Letters, Elsevier, vol. 103(2), pages 68-71, May.
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