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Entry in a homogeneous Cournot-oligopoly is excessive if there is business stealing. This prediction assumes that production costs reduce profits and welfare equally. However, this need not be the case. If there is asymmetric information, suppliers or employees can utilize their superior...
Persistent link: https://www.econbiz.de/10013535974
We study a situation where physicians differing in their degree of altruism exert a diagnostic effort before deciding whether to test patients to determine the most appropriate treatment. The diagnostic effort generates an imperfect private signal of the patient’s type, while the test is...
Persistent link: https://www.econbiz.de/10015211646
We develop a model where a genetic test reveals whether an individual has a low or high probability of developing a disease. A costly prevention effort allows high-risk agents to decrease this probability. Agents are not obliged to take the test, but must disclose its results to insurers, and...
Persistent link: https://www.econbiz.de/10014167895
We deal with a principal-agent model in which the health authority acts as a principal for both a patient and a General Practitioner (GP). In this framework, we study the role of GPs as filters for secondary care, emphasizing the implications that patients' information may have for health...
Persistent link: https://www.econbiz.de/10014051301
The Enron scandal has raised questions regarding the adequacy of the present system of financial disclosure. At the same time, public policies increasingly use information disclosure as a regulatory device in a variety of areas beyond financial reporting. This paper provides a framework for...
Persistent link: https://www.econbiz.de/10014033709
The questions addressed in this paper are related to access rules to primary care services and the potential for patient driven competition between GPs and specialists. Most of the literature on the performance of primary care has dealt with reforming payment schemes, little attention being paid...
Persistent link: https://www.econbiz.de/10014071531
This paper focuses on risk information campaigns familiarizing consumers with hazardous product attributes and compares policies advocating voluntary and mandatory displays of warning messages. The food allergen labeling campaign provides an opportunity to focus on the availability and...
Persistent link: https://www.econbiz.de/10014142386
Persistent link: https://www.econbiz.de/10014335893
Many economists and policy-makers believe that bailouts of systemically important financial institutions (SIFIs), though unavoidable ex post, are inefficient ex ante: The expectation of such bailouts is said to lead to moral hazard in the form of excessive risk taking. We argue that this view...
Persistent link: https://www.econbiz.de/10012986783
To test if safety nets create moral hazard in the banking industry, we develop a simultaneous structural two-equations model that specifies the probability of a bailout and banks' risk taking.We identify the effect of expected bailout probabilities on risk taking using exclusion restrictions...
Persistent link: https://www.econbiz.de/10012989226