Economics at your fingertips  

Physician Reimbursement, Time-Consistency and the Quality of Care

Robert Nuscheler

Journal of Institutional and Theoretical Economics (JITE), 2003, vol. 159, issue 2, 302-322

Abstract: We use a model of horizontal and vertical differentiation to study physicians´incentives to provide quality in the physician-patient relationship under price regulation. If the price is the only regulatory variable, the social planner cannot implement the first-best policy. Moreover, the second-best policy is time-inconsistent. Excess entry and first-best efficient total quality provision are observed in the game without commitment. Allowing physicians to compete in prices does not solve the commitment problem, since the competitive solution coincides with the time-consistent outcome. In the median-voter equilibrium the time-consistency problem is more severe.

JEL-codes: I11 I18 L51 R10 (search for similar items in EconPapers)
Date: 2003
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (22) Track citations by RSS feed

Downloads: (external link) ... 16280932456032974853 (text/html)
Fulltext access is included for subscribers to the printed version.

Related works:
Working Paper: Physician reimbursement, time-consistency and the quality of care (2002) Downloads
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:

Ordering information: This journal article can be ordered from
Mohr Siebeck GmbH & Co. KG, P.O.Box 2040, 72010 Tübingen, Germany

Access Statistics for this article

Journal of Institutional and Theoretical Economics (JITE) is currently edited by Gerd Mühlheußer and Bayer, Ralph-C

More articles in Journal of Institutional and Theoretical Economics (JITE) from Mohr Siebeck, Tübingen
Bibliographic data for series maintained by Thomas Wolpert ().

Page updated 2019-06-20
Handle: RePEc:mhr:jinste:urn:sici:0932-4569(200306)159:2_302:prtatq_2.0.tx_2-o