This paper uses a two-sided market model of hospital competition to study the implications of different remunerations schemes on the physicians’ side. The two-sided market approach is characterized by the concept of common network externality (CNE) introduced by Bardey et al. (2010). This type...

We study competition in two sided markets with common network externality rather than with the standard inter-group effects. This type of externality occurs when both groups bene…fit, possibly with different intensities, from an increase in the size of one group and from a decrease in the size...