agency has private information about product quality, but is inclined to favour local suppliers. Decentralization saves … when the quality differences increase. Moreover, this effect may be dominant, implying that increased importance of local …

baseline price. We examine how such a “bonus-for-quality” reimbursement scheme affects the wage contract given to physicians by … the quality standard. Additionally, we show that the health care payer has to complement the bonus with a (sometimes …

We present a model of optimal contracting between a purchaser and a provider of health services when quality has two … dimensions. We assume that one dimension of quality is veri?able (dimension 1) and one dimension is not verifiable (dimension 2 … quality 1 increases or decreases the provider's marginal disutility and the patients' marginal benefit from quality 2 (i …

baseline price. We examine how such a “bonus-for-quality” reimbursement scheme affects the wage contract given to physicians by … the quality standard. Additionally, we show that the health care payer has to complement the bonus with a (sometimes …