P4P, Reputation and the Reduction of Costly Overprovision

Nadja Kairies

No 331, Ruhr Economic Papers from RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen

Abstract: We investigate the effect of reputational motivation on output in a scenario of overprovision of medical treatment. We assume that physicians differ in their degree of altruism, enjoy being perceived as good but dislike being perceived as greedy. We show that better reputational motivation unambiguously reduces the costs of healthcare provision and the magnitude of overprovision which in turn rises patient benefits.

Keywords: Altruism; performance; motivation (search for similar items in EconPapers)
JEL-codes: D64 H42 I11 I18 (search for similar items in EconPapers)
Date: 2012
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:rwirep:331

DOI: 10.4419/86788380

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