Competition between For-Profit and Nonprofit Health Care Providers and Quality

Rune Stenbacka, Mihkel Tombak

Forskningsoutput: TidskriftsbidragArtikelPeer review


We develop a model including many features of health care systems: a limited number of approved treatments of certain qualities, insurance schemes reimbursing costs of a standard service, and nonprofit organizations competing with for-profit suppliers. All the equilibria exhibit quality differentiation, and the nonprofit captures a higher market share. Nonprofits (for-profits) supply the standard service when the quality upgrade induces a sufficiently high (low) increase in production costs. When the nonprofit provides the standard quality, all patients are served. In contrast, in a for-profit duopoly the standard-quality provider chargesa price premium, implying that there are excluded consumers.
Referentgranskad vetenskaplig tidskriftJournal of Institutional and Theoretical Economics
Sidor (från-till)243-275
Antal sidor33
StatusPublicerad - 12.03.2020
MoE-publikationstypA1 Originalartikel i en vetenskaplig tidskrift


  • 511 Nationalekonomi

Styrkeområden och områden med hög potential (AoS och AoHP)

  • AoS: Konkurrensanalys och servicestrategi - Kvantitativt konsumentbeteende och konkurrensekonomi


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