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Title:Hospital competition and quality with regulated prices PDF Logo
Authors:Brekke, Kurt R.
Siciliani, Luigi
Straume, Odd Rune
Issue Date:2009
Series/Report no.:CESifo working paper 2635
Abstract:We analyse the effect of competition on quality in hospital markets with regulated prices, considering both the effect of (i) introducing competition (monopoly versus competition) and (ii) increasing competition through lower transportation costs (increased substitutability) or a higher number of hospitals. With semi-altruistic providers and a fairly general cost structure, we show that the relationship between competition and quality is generally ambiguous. In contrast to the received theoretical literature, this is consistent with, and potentially explains, the mixed empirical evidence.
Subjects:hospitals
competition
quality
JEL:H42
I11
I18
L13
Document Type:Working Paper
Appears in Collections:CESifo Working Papers, CESifo Group Munich

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