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 study the Markov perfect equilibrium, and we identify the admissible parameter region wherein price regulation achieves the twofold objectives of ensuring cares to all patients and heal all of them.
Price Regulation and Health Care with Disease Dynamics / Lambertini, L.; Tampieri, A.. - In: THE REVIEW OF ECONOMICS ANALYSIS. - ISSN 1973-3909. - ELETTRONICO. - 7:(2015), pp. 157-172.
Price Regulation and Health Care with Disease Dynamics
TAMPIERI, ALESSANDRO
2015
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 study the Markov perfect equilibrium, and we identify the admissible parameter region wherein price regulation achieves the twofold objectives of ensuring cares to all patients and heal all of them.
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