Kaarboe, Oddvar Martin; Siciliani, Luigi - C.E.P.R. Discussion Papers - 2008
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 verifiable (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 …