Health Care Network Formation and Policyholders’ Welfare

  title={Health Care Network Formation and Policyholders’ Welfare},
  author={David Bardey and JEAN-MARC BOURGEON and Policyholders’ Welfare and Jean-Marc Bourgeon},
  • David Bardey, JEAN-MARC BOURGEON, +2 authors Jean-Marc Bourgeon
  • Published 2010
We develop a model in which two insurers and two health care providers compete for a fixed mass of policyholders. Insurers compete in premium and offer coverage against financial consequences of health risk. They have the possibility to sign agreements with providers to establish a health care network. Providers, partially altruistic, are horizontally differentiated with respect to their physical address. They choose the health care quality and compete in price. First, we show that… CONTINUE READING