Encinosa, William E.; Sappington, David E. M. - In: Journal of Economics & Management Strategy 6 (1997) 1, pp. 129-150
We develop a model of competition among health maintenance organizations (HMOs) to analyze the effects of market power, scale economies, and asymmetric knowledge of health risk on market outcomes. We find that competition among HMOs may, but need not, ensure socially preferred outcomes. Market...