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Price policies and Price dispersion in the private healthcare insurance industry: The Catalan case

Author

Listed:
  • Oliva, Martí
  • Carles Lavila, Misericòrdia

Abstract

We present an overlapping generations model that explains price dispersion among Catalonian healthcare insurance firms. The model shows that firms with different premium policies can coexist. Furthermore, if interest rates are low, firms that apply equal premium to all insureds can charge higher average prices than insurers that set premiums according to the risk of insured. Economic theory, health insurance, health economics.

Suggested Citation

  • Oliva, Martí & Carles Lavila, Misericòrdia, 2011. "Price policies and Price dispersion in the private healthcare insurance industry: The Catalan case," Working Papers 2072/179617, Universitat Rovira i Virgili, Department of Economics.
    • Handle: RePEc:urv:wpaper:2072/179617
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    File URL: http://hdl.handle.net/2072/179617
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