Abstract：
:We show that when health care providers have market power and engage in Cournot competition, a competitive upstream health insurance market results in over-insurance and over-priced health care. Even though consumers and firms anticipate the price interactions between these two markets - the price set in one market affects the demand expressed in the other - Pareto improvements are possible. The results suggest a beneficial role for Government intervention, either in the insurance or the health care market.
journal_name
J Health Econjournal_title
Journal of health economicsauthors
Vaithianathan Rdoi
10.1016/j.jhealeco.2006.03.003subject
Has Abstractpub_date
2006-11-01 00:00:00pages
1193-202issue
6eissn
0167-6296issn
1879-1646pii
S0167-6296(06)00030-0journal_volume
25pub_type
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