Provider Competition in a Dynamic Setting

Marie Allard (), Pierre Leger and Lise Rochaix
Additional contact information
Marie Allard: IEA, HEC Montréal, http://www.hec.ca/iea/

No 04-07, Cahiers de recherche from HEC Montréal, Institut d'économie appliquée

Abstract: In this paper, we examine provider and patient behaviour where effort is non-contractible and where competition between providers is modeled in an explicit way. More specifically, we construct a model where physicians repeatedly compete for patients and where patients’ outside options are solved for in equilibrium. In our model, physicians are characterized by an individual-specific ethical constraint which allows for unobserved heterogeneity in the physicians market. By doing so, we introduce uncertainty in the patient’s likely treatment if he were in fact to leave his current physician to seek care elsewhere. We find that competition between providers may serve as an important incentive for physicians in treating their patients with desired levels of care.

Keywords: Physician Payment Mechanisms; Physician heterogeneity; Competition; Information Asymmetry; Insurance. (search for similar items in EconPapers)
JEL-codes: C30 I10 I18 J24 (search for similar items in EconPapers)
Pages: 32 pages
Date: 2004-08
New Economics Papers: this item is included in nep-com
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (10)

Downloads: (external link)
http://www.hec.ca/iea/cahiers/2004/iea0407_maptl.pdf (application/pdf)

Related works:
Journal Article: Provider Competition in a Dynamic Setting (2009)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:iea:carech:0407

Ordering information: This working paper can be ordered from
Institut d'économie appliquée HEC Montréal 3000, Chemin de la Côte-Sainte-Catherine Montréal, Québec H3T 2A7

The price is Free.

Access Statistics for this paper

More papers in Cahiers de recherche from HEC Montréal, Institut d'économie appliquée Institut d'économie appliquée HEC Montréal 3000, Chemin de la Côte-Sainte-Catherine Montréal, Québec H3T 2A7. Contact information at EDIRC.
Bibliographic data for series maintained by Patricia Power ().