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

Damien Besancenot (1) , Radu Vranceanu (2, 3)

1 LIRAES - EA 4470 - Laboratoire Interdisciplinaire de Recherche Appliquée en Economie de la Santé
2 THEMA - Théorie économique, modélisation et applications
3 ESSEC Business School

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.

Mots clés: Regulation.; Equilibrium search; Medical fee dispersion; Dual market

Domaines: Economies et finances

Damien Besancenot, Radu Vranceanu. An equilibrium search model of the French dual market for medical services. 2017. ⟨hal-01574648⟩