Asymmetric information, agency & supplier induced demand - Asymmetric information & Principal-agent issues in healthcare - Agency relations in health care
4 important questions on Asymmetric information, agency & supplier induced demand - Asymmetric information & Principal-agent issues in healthcare - Agency relations in health care
What are the agency problems between doctors and patients? (2x)
- The ‘perfect’ physician is one who chooses as the patients themselves would choose If only the patients possessed the information that the physician does.
- This is in line with the medical code of ethics
What is the relation between consumer information and prices?
- Medical care is a reputation good
- Market can be characterized as monopolistically competitive
- Under these conditions, an increase in the number of providers can increase prices
What is the relation between consumer information and quality?
- Consumers cannot easily monitor quality
- Costly search for quality information
- Consequence of poor quality can be severe
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What does the cream-skimming behaviour of insurers do?
- Insurers being more interested in searching for 'good risks' rather than in providing quality care
- it's a market failure
The question on the page originate from the summary of the following study material:
- A unique study and practice tool
- Never study anything twice again
- Get the grades you hope for
- 100% sure, 100% understanding
