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No Crowding Out despite Kickbacks: Competition between Gatekeeping GPs

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  • Felder, Stefan
  • Amann, Erwin

Abstract

In health service markets, patients often rely on the advice of their general practitioner (GP) to decide which treatment best fits their needs. Hospitals, in turn, influence GPs referral decisions through kickbacks. We formulate a model with competitive heterogeneous GPs who differ in the degree to which they internalize the disutility that their patients suffer from inappropriate treatments. We prove that a separable equilibrium with referring and not referring GPs exist.

Suggested Citation

  • Felder, Stefan & Amann, Erwin, 2017. "No Crowding Out despite Kickbacks: Competition between Gatekeeping GPs," VfS Annual Conference 2017 (Vienna): Alternative Structures for Money and Banking 168116, Verein für Socialpolitik / German Economic Association.
    • Handle: RePEc:zbw:vfsc17:168116
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    References listed on IDEAS

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    Full references (including those not matched with items on IDEAS)

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    More about this item

    JEL classification:

    • D47 - Microeconomics - - Market Structure, Pricing, and Design - - - Market Design
    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
    • I11 - Health, Education, and Welfare - - Health - - - Analysis of Health Care Markets
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • L50 - Industrial Organization - - Regulation and Industrial Policy - - - General

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