Competition and screening with motivated health professionals

Francesca Barigozzi and Nadia Burani

Journal of Health Economics, 2016, vol. 50, issue C, 358-371

Abstract: Two hospitals compete for the exclusive services of health professionals, who are privately informed about their ability and motivation. Hospitals differ in their ownership structure and in the mission they pursue. The non-profit hospital sacrifices some profits to follow its mission but becomes attractive for motivated workers. In equilibrium, when both hospitals are active, the sorting of workers to hospitals is efficient and ability-neutral. Allocative distortions are decreasing in the degree of competition and disappear when hospitals are similar. The non-profit hospital tends to provide a higher amount of care and offer lower salaries than the for-profit one.

Keywords: For-profit vs non-profit hospitals; Multi-principals; Intrinsic motivation; Skills; Bidimensional screening; Wage differential (search for similar items in EconPapers)
JEL-codes: D86 I11 J24 J31 L31 (search for similar items in EconPapers)
Date: 2016
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (27)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jhecon:v:50:y:2016:i:c:p:358-371

DOI: 10.1016/j.jhealeco.2016.06.003

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