The purpose of this paper is to examine the interplay between public and private health care. We consider a situation where public and private health care are perfect substitutes, and the government sets the wage in the public sector and the subsidy to (or taxation on) the private sector. Each...

The interaction of insurance and the market for physician services is considered in a model where imperfectly informed consumers rely on doctors for advice on the utilization of services and there is monopolistic competition among physicians on the basis of price and the quality of their advice....