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The Dynamics of Disease in a Regulated Vertically Differentiated Health System


Luca Lambertini


University of Bologna - Department of Economics

Alessandro Tampieri


University of Bologna - Department of Economics

March 3, 2011

Quaderni DSE Working Paper No. 737

Abstract:     
We build up a differential game to investigate the interplay between the quality of health care and the presence of an evolving disease in a duopoly where patients are heterogeneous along the income dimension. We prove unicity, stability and perfection of the open-loop Nash solution. Moreover, we identify the admissible parameter region wherein price regulation achieves the twofold objectives of ensuring cares to all patients and eradicating the disease.

Number of Pages in PDF File: 21

Keywords: health care markets, quality, dynamic games

JEL Classification: C73, H42, I11, I18, L13

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Date posted: March 12, 2011  

Suggested Citation

Lambertini, Luca and Tampieri, Alessandro, The Dynamics of Disease in a Regulated Vertically Differentiated Health System (March 3, 2011). Quaderni DSE Working Paper No. 737. Available at SSRN: http://ssrn.com/abstract=1782705 or http://dx.doi.org/10.2139/ssrn.1782705

Contact Information

Luca Lambertini (Contact Author)
University of Bologna - Department of Economics ( email )
Strada Maggiore 45
Bologna, 40125
Italy
+39 051 2092600 (Phone)
+39 051 2092664 (Fax)
Alessandro Tampieri
University of Bologna - Department of Economics ( email )
Strada Maggiore 45
Bologna, 40125
Italy
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