Doctors and patients generally share a common interest in maximizing the quality of care. Purchasers of health care on the other hand, desire cost-effective levels of quality. We consider the purchase...
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 ...
Most countries ban the advertising of prescription medication directly to consumers, yet allow drug companies to promote drugs to doctors intensively. Such a differential treatment of promotion cannot...