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We examine the strategic interaction in the market for physician services when the total budget for reimbursement is fixed. We show that this prospective payment system involves - compared to a fee-for-service remuneration system - a severe coordination problem, which potentially leads to the...
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Does individual well-being depend on the absolute level of income and consumption or is it relative to one …'s aspirations? In a direct empirical test, it is found that higher income aspirations reduce people's utility, ceteris paribus …. Individual data on reported satisfaction with life are used as a proxy measure for utility, and income evaluation measures are …
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