In 2003, Germany switched from a fee-for-service (FFS) system to a fixed-fee prospective payment system (PPS) in reimbursement schemes for hospitals. In close cooperation with two hospitals in Germany we have compiled a data set to analyze the impacts of the new system on the length of stay in...

This paper studies drivers' responses to a "notched" penalty scheme in which speeding penalties are stepwise and discontinuously increasing in speed. We present survey evidence suggesting that drivers in Germany are well aware of the notched penalty structure. Based on a simple analytical...