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Imperfect quality information in a quality-competitive hospital market

Author

Listed:
  • Hugh Gravelle
  • Peter Sivey

Abstract

We examine the implications of policies to improve information about the qualities of profit seeking duopoly hospitals which face the same regulated price and compete on quality. We show that if the hospital costs of quality are similar then better information increases the quality of both hospitals. However if the costs are sufficiently different improved information will reduce the quality of both hospitals.

Suggested Citation

  • Hugh Gravelle & Peter Sivey, "undated". "Imperfect quality information in a quality-competitive hospital market," Discussion Papers 09/09, Department of Economics, University of York.
    • Handle: RePEc:yor:yorken:09/09
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    Keywords

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    JEL classification:

    • I11 - Health, Education, and Welfare - - Health - - - Analysis of Health Care Markets
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation

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