Abstract

http://ssrn.com/abstract=1396621
 
 

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Hospital Competition and Quality with Regulated Prices


Kurt Richard Brekke


Norwegian School of Economics (NHH) - Department of Economics; CESifo (Center for Economic Studies and Ifo Institute)

Luigi Siciliani


University of York

Odd Rune Straume


University of Minho - Economic Policies Research Unit (NIPE); CESifo (Center for Economic Studies and Ifo Institute)

April 2009

CESifo Working Paper Series No. 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.

Number of Pages in PDF File: 27

Keywords: hospitals, competition, quality

JEL Classification: H42, I11, I18, L13

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Date posted: April 29, 2009  

Suggested Citation

Brekke, Kurt Richard and Siciliani, Luigi and Straume, Odd Rune, Hospital Competition and Quality with Regulated Prices (April 2009). CESifo Working Paper Series No. 2635. Available at SSRN: http://ssrn.com/abstract=1396621

Contact Information

Kurt Richard Brekke
Norwegian School of Economics (NHH) - Department of Economics ( email )
Helleveien 30
N-5035 Bergen
Norway

CESifo (Center for Economic Studies and Ifo Institute)
Poschinger Str. 5
Munich, DE-81679
Germany
Luigi Siciliani
University of York ( email )
Heslington
York, YO10 5DD
United Kingdom
Odd Rune Straume (Contact Author)
University of Minho - Economic Policies Research Unit (NIPE) ( email )
Campus de Gualtar
Braga, 4710-057
Portugal
CESifo (Center for Economic Studies and Ifo Institute)
Poschinger Str. 5
Munich, DE-81679
Germany
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