Monopolistic Competition and Supply-Side Cost Sharing in the Physician Services Market

Ake Blomqvist
Authors registered in the RePEc Author Service: Victor Aguirregabiria ()

No 9705, University of Western Ontario, Departmental Research Report Series from University of Western Ontario, Department of Economics

Abstract: The interaction of insurance and the market for physician services is considered in a model where imperfectly informed consumers rely on doctors for advice on the utilization of services and there is monopolistic competition among physicians on the basis of price and the quality of their advice. Equilibria under fee for service and capitation are compared, and I analyze the use of a system of capitation and partial supply-side cost sharing to attain an outcome superior to either pure fee for service or pure capitation.

Keywords: INSURANCE; MONOPOLIES; COMPETITION; HEALTH SERVICES; SUPPLY (search for similar items in EconPapers)
JEL-codes: D43 D83 I11 (search for similar items in EconPapers)
Date: 1997
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Citations: View citations in EconPapers (3)

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