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This paper shows the strategic aspects of international outsourcing in a duopolistic market. Due to different costs of integrated production and outsourcing, the choice of a firm influences the strategy of the competitor via the output price. Therefore, the resulting market constellation depends...
Persistent link: https://www.econbiz.de/10008796592
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the effects of medical insurance and competition in the guise of free choice of physician, including observability of … consult more often and physicians overtreat more often than in the baseline condition. Competition decreases overtreatment … compared to the baseline and patients therefore consult more often. When the two institutions are combined, competition is …
Persistent link: https://www.econbiz.de/10011490343
stylized way, we study the effects of medical insurance and competition in the guise of free choice of physician. Medical … physicians overtreat more often than in the baseline condition. Competition decreases overtreatment compared to the baseline and … patients therefore consult more often. When the two institutions are combined, competition is found to partially offset the …
Persistent link: https://www.econbiz.de/10010413597
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This paper studies a principal-agent relation in which the principal's private information about the agent's effort choice is more accurate than a noisy public performance measure. For some contingencies the optimal contract has to specify ex post inefficiencies in the form of inefficient...
Persistent link: https://www.econbiz.de/10009752336
We study contracting between a consumer and an expert. The expert can invest in diagnosis to obtain a noisy signal about whether a low-cost service is sufficient or whether a high-cost treatment is required to solve the consumerś problem. This involves moral hazard because diagnosis effort and...
Persistent link: https://www.econbiz.de/10010429934
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This paper evaluates how sick pay mandates operate at the job level in the United States. Using the National Compensation Survey and difference-in-differences models, we estimate their impact on coverage rates, sick leave use, labor costs, and non-mandated fringe benefits. Sick pay mandates...
Persistent link: https://www.econbiz.de/10012671879
In evaluating the effectiveness of R&D subsidies, the literature has focused on potential crowding out effects, while the possibility of misappropriation of public funds that results from moral hazard behavior has been completely neglected. This study develops a theoretical framework with which...
Persistent link: https://www.econbiz.de/10012661468