Brekke, Kurt Richard; Siciliani, Luigi; Straume, Odd Rune - C.E.P.R. Discussion Papers - 2013
We study the incentives for hospitals to provide quality and expend cost-reducing effoort when their budgets are soft, i.e., the payer may cover deficits or confiscate surpluses. The basic set up is a Hotelling model with two hospitals that differ in location and face demand uncertainty, where...