Abstract We analyze the effect that competition between HMOs has on the cost and quality of medical services. Our key result is that increasing competition enhances consumer utility while also moderating the impact of managed care on quality and costs. Indeed, we find that heightened competition...

We analyze the effect that competition between HMOs has on the cost and quality of medical services. Our key result is that increasing competition enhances consumer utility while also moderating the impact of managed care on quality and costs. Indeed, we find that heightened competition between...

Abstract We analyze how the cost-effectiveness of R&D influences the incentives for governments to impose export subsidies. Governments first impose an export subsidy, or a tax. After observing export policy, firms invest in cost reducing R&D and subsequently compete in the market. Governments...

Zusammenfassung Der Beitrag untersucht, bei welcher Marktgröße, bei welcher Kartellgröße und bei welchem Homogenitätsgrad der angebotenen Produkte ein Anbieterkartell intern und extern stabil sein kann. Betrachtet werden Nash-Gleichgewichte, in denen die Anbieter reine Preisstrategien...

The Hotelling model is used to illustrate the effects of product differentiation on market outcomes. After introducing the model, we create a demand function for the product and examine the socially optimal amount and scope of variety. We then examine how monopoly and competitive market...

Abstract Certain health insurers offer a free choice of providers and an identical copayment regardless of the provider. Others build networks and use selective contracting and financial incentives to channel policyholders to contracted suppliers. In the case of unregulated prices, we compare...

Abstract The existing theoretical literature on mass customization maintains that customization reduces product differentiation and intensifies price competition. In contrast, operations management studies argue that customization serves primarily to differentiate a company from its competitors....

This paper explores the link between quality, cost and concentration. Using concentration and cost data and product quality indicators for 2,244 products in over eighty industries in 1997 and 2002 in the US, a two-stage, ordered probit, random effects estimation explores the impact of...

Seeks to expand managers′ awareness of the opportunities available for differentiating their products by increasing or decreasing the customer′s involvement in production or delivery. Presents a specific method for identifying opportunities for participation differentiation. Also seeks to...

Develops and refines a new way to generate and identify opportunities for really new product functions. Considers that the role played by marketing research in really new products is limited. Traditional marketing research methods here are largely confined to asking people about problems with...