An equilibrium search model of the French dual market for medical services

Abstract : The French market for specialist physician care has a dual structure, including a sector 1 with regulated fees, and a sector 2 where physicians can freely choose fees. Patients who undergo a sequential search process for the best medical o¤er develop a reservation fee decision rule. We analyzed physicians’ decisions to work in sector 1 or in sector 2, and their choice of fee in sector 2. The model features several pure strategy equilibria that can be ordered with respect to patient welfare. Policy implications follow.
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Submitted on : Wednesday, August 16, 2017 - 8:59:32 AM
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Damien Besancenot, Radu Vranceanu. An equilibrium search model of the French dual market for medical services. 2017. ⟨hal-01574648⟩

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