How complex are the contracts offered by health plans?

Artikel

When health plans compete under adverse selection, the competitive equilibrium set of contracts is unique. However, the allocation of these contracts among health plans is undetermined. We show that three health plans suffice to sustain an equilibrium where each health plan offers a single contract and attracts a single type of agent (full specialization). We also show that this equilibrium can be ruled out by introducing any horizontal differentiation, and that if in equilibrium each health plan attracts all types of agents, at least one of the health plans must do so through a menu of contracts.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Journal: SERIEs - Journal of the Spanish Economic Association ; ISSN: 1869-4195 ; Volume: 1 ; Year: 2010 ; Issue: 3 ; Pages: 305-323 ; Heidelberg: Springer

Classification and Topics

• Classification: Wirtschaft ; Asymmetric and Private Information; Mechanism Design ; Analysis of Health Care Markets ; Oligopoly and Other Imperfect Markets
• Subject: health plans competition ; adverse selection ; differentiation ; Private Krankenversicherung ; Adverse Selektion ; Asymmetrische Information ; Versicherungsökonomik

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Olivella, Pau ; Vera-Hernandez, Marcos
• Event: Veröffentlichung
• (who): Springer
• (where): Heidelberg
• (when): 2010

Further information

• DOI: doi:10.1007/s13209-010-0026-3
• Handle: http://hdl.handle.net/10419/77752
• Last update: 10.03.2025, 11:45 AM CET