Competition between For-Profit and Nonprofit Health Care Providers and Quality

Show full item record

Permalink

Citation

Stenbacka , R & Tombak , M 2020 , ' Competition between For-Profit and Nonprofit Health Care Providers and Quality ' , Journal of Institutional and Theoretical Economics , vol. 176 , no. 2 , pp. 243-275 . https://doi.org/10.1628/jite-2020-0002

Title: Competition between For-Profit and Nonprofit Health Care Providers and Quality
Author: Stenbacka, Rune; Tombak, Mihkel
Contributor: Hanken School of Economics, Economics, Helsinki
Belongs to series: Journal of Institutional and Theoretical Economics
ISSN: 0932-4569
Abstract: We develop a model including many features of health care systems: a limited number of approved treatments of certain qualities, insurance schemes reimbursing costs of a standard service, and nonprofit organizations competing with for-profit suppliers. All the equilibria exhibit quality differentiation, and the nonprofit captures a higher market share. Nonprofits (for-profits) supply the standard service when the quality upgrade induces a sufficiently high (low) increase in production costs. When the nonprofit provides the standard quality, all patients are served. In contrast, in a for-profit duopoly the standard-quality provider chargesa price premium, implying that there are excluded consumers.
Date: 2020-03-12
Subject: 511 Economics
competition between for-profits and nonprofits
exclusion
health care quality
Mixed Duopoly
nonprofit organizations
quality differentiation
KOTA2020
PREM0000
0 - Not open access
0 - Not self archived
1- Minst en av författarna har en utländsk affiliation
1- Publicerad utomlands
0- Ingen affiliation med ett företag
AoS: Competition economics and service strategy - Quantitative consumer behaviour and competition economics
Rights:


Files in this item

Total number of downloads: Loading...

Files Size Format View
JITE_NonprofitsQualityHealthcare18Aug2019.pdf 1.480Mb PDF View/Open

This item appears in the following Collection(s)

Show full item record