Imperfect information in a quality-competitive hospital market

B-Tier
Journal: Journal of Health Economics
Year: 2010
Volume: 29
Issue: 4
Pages: 524-535

Score contribution per author:

1.005 = (α=2.01 / 2 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

We examine the implications of policies to improve information about the qualities of profit-seeking duopoly hospitals which face the same regulated price and compete on quality. We show that if hospital costs of quality are similar then better information increases the quality of both hospitals. However, if the costs are sufficiently different improved information will reduce the quality of both hospitals. Moreover, even when quality increases, better information may increase or decrease patient welfare depending on whether an ex post or ex ante view of welfare is taken.

Technical Details

RePEc Handle
repec:eee:jhecon:v:29:y:2010:i:4:p:524-535
Journal Field
Health
Author Count
2
Added to Database
2026-01-25