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 …

We examine whether a hospitals quality is affected by the quality provided by other hospitals in the same market. We … determine whether a hospital will have higher quality when its rivals have higher quality. We then apply spatial econometric … methods to a sample of English hospitals in 2009-10 and a set of 16 quality measures including mortality rates, readmission …

on quality, price and welfare. The merging firms always reduce quality. They also increase prices if demand … responsiveness to quality is sufficiently low. The non-merging firm, on the other hand, always responds by increasing both quality … and prices. Overall, a merger leads to higher average prices and quality in the market. The welfare implications of a …

on quality, price and welfare. The merging firms always reduce quality. They also increase prices if demand … responsiveness to quality is sufficiently low. The non-merging firm, on the other hand, always responds by increasing both quality … and prices. Overall, a merger leads to higher average prices and quality in the market. The welfare implications of a …

We examine whether a hospital's quality is affected by the quality provided by other hospitals in the same market. We … whether a hospital will increase its quality if its rivals increase their quality. We then apply spatial econometric methods … to a sample of English hospitals in 2009–10 and a set of 16 quality measures including mortality rates, readmission …

on quality, price and welfare. The merging firms always reduce quality. They also increase prices if demand … responsiveness to quality is sufficiently low. The non-merging firm, on the other hand, always responds by increasing both quality … and prices. Overall, a merger leads to higher average prices and quality in the market. The welfare implications of a …

We study the incentives for hospitals to provide quality and expend cost-reducing effort when their budgets are soft, i …. Softer budgets reduce cost efficiency, while the effect on quality is ambiguous. For given cost efficiency, softer budgets … increase quality since parts of the expenditures may be covered by the payer. However, softer budgets reduce cost …

We study the incentives for hospitals to provide quality and expend cost-reducing effort when their budgets are soft, i …. Softer budgets reduce cost efficiency, while the effect on quality is ambiguous. For given cost efficiency, softer budgets … increase quality since parts of the expenditures may be covered by the payer. However, softer budgets reduce cost …

We investigate the effect of competition on quality in regulated markets (e.g., health care, higher education, public … the open-loop solution (providers choose the optimal quality investment plan based on demand at the initial period) and … the feedback closed-loop solution (providers observe demand in each period and choose quality in response to current …