Demand and pricing of preventative healthcare

Sotiris Vandoros and Katherine Carman

LSE Research Online Documents on Economics from London School of Economics and Political Science, LSE Library

Abstract: This study introduces a theoretical framework for the economics of preventative healthcare. Mathematical models are used to explain how the price and utilization of prevention change depending on demand, as well as factors such as the price of a cure, the probability of illness, the efficacy of treatment, the probability of illness and cost functions. Different models are developed depending on the presence and level of health insurance and competition in preventative healthcare markets. Findings show the effect of various factors on the price of preventative healthcare, reveal the marginal effects of a change in the parameters on prices and suggest that under certain circumstances prevention is not the optimal choice.

Keywords: preventative healthcare; pricing (search for similar items in EconPapers)
JEL-codes: I11 L11 (search for similar items in EconPapers)
Pages: 29 pages
Date: 2011-05
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:ehl:lserod:37159

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