Location Choice and Quality Competition in Mixed Hospital Markets

B. Hehenkamp, O.M. Kaarbøe, Journal of Economic Behavior & Organization (n.d.).

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Journal Article | Accepted | English
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Many countries have opened their health care markets to private for-profit providers, aiming to promote quality and choice for patients. The prices are regulated and providers compete in location and quality. We show that whereas opening a public hospital market typically raises quality, the private provider strategically locates towards the corner of the market to avoid costly quality competition. Social welfare depends on the size of the regulator's budget and on the altruism of the public provider. If the budget is large, high quality results and welfare is highest in a duopoly whenever entry is optimal. If the budget is small, quality levels in a duopoly mirror the quality level in a monopoly. It can be optimal for the regulator not to use the full budget.
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Journal of Economic Behavior & Organization
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Hehenkamp B, Kaarbøe OM. Location Choice and Quality Competition in Mixed Hospital Markets. Journal of Economic Behavior & Organization.
Hehenkamp, B., & Kaarbøe, O. M. (n.d.). Location Choice and Quality Competition in Mixed Hospital Markets. Journal of Economic Behavior & Organization.
@article{Hehenkamp_Kaarbøe, title={Location Choice and Quality Competition in Mixed Hospital Markets}, journal={Journal of Economic Behavior & Organization}, author={Hehenkamp, Burkhard and Kaarbøe, Odvar M. } }
Hehenkamp, Burkhard, and Odvar M. Kaarbøe. “Location Choice and Quality Competition in Mixed Hospital Markets.” Journal of Economic Behavior & Organization, n.d.
B. Hehenkamp and O. M. Kaarbøe, “Location Choice and Quality Competition in Mixed Hospital Markets,” Journal of Economic Behavior & Organization.
Hehenkamp, Burkhard, and Odvar M. Kaarbøe. “Location Choice and Quality Competition in Mixed Hospital Markets.” Journal of Economic Behavior & Organization.

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