Asymmetric information, agency & supplier induced demand - Asymmetric information & Principal-agent issues in healthcare
9 important questions on Asymmetric information, agency & supplier induced demand - Asymmetric information & Principal-agent issues in healthcare
Who is the principal and who is the agent in moral hazard?
The agent is the patient and/or doctor
What are the problems with moral hazard? (3x)
- Patients may take less preventive action due to insurance (ex-ante moral hazard)
- Patients may use more, or more expensive, healthcare due to insurance (ex-post moral hazard)
- physisians may prescribe more, or more expensive, healthcare due to insurance (provider induced moral hazard)
All of these can result in overconsumption or underconsumption of care.
What are the problems with 'adverse selection'?
- Premiums increase à healthy people increasingly flee à unhealthy people remain à insurers’ average costs increase à premiums increase à …
- Higher grades + faster learning
- Never study anything twice
- 100% sure, 100% understanding
For my 1st exam I got a C. Then, I started looking for ways to learn better and I came across Study Smart. Since then I have scored a A+, A, A- and another A. I highly recommend it to everyone who wants to hear it. I am so happy with it!!
I was struggling to finish all my first-year subjects for 3 years. Then I discovered Study Smart, which helped me to finish all of them within 3 months.
Because of StudySmart, things are going well in many ways. Before, I always had study stress and no time for anything. Now I feel calm and confident (because of the program). I used to score a B, now I usually score an A or A+.
Hey Chris, I really want to thank you very much for developing the platform, I usually got around C for my exams, now I scored an A+, an A and a A- !!
Since using Study Smart, my average has increased significantly. I even completed a statistics course with a A+ while I'm bad at statistics. I took on extra courses this year, because of Study Smart. Thanks so much!
Ever since I started studying with StudySmart I passed all my exams !!! No more re-sits!! At first, I was happy with a pass and now I only get good grades. Many thanks!
I aced all the courses I studied with Study Smart. For law, I first scored a D, and now an A! I’m 100% sure that I’ll pass all the courses I study with Study Smart.
I always thought I studied well. My grades were fine. I could never have imagined that applying these study skills would have such a huge and direct impact on my grades, my speed and the pleasure I have in learning.
For the first time, I finally feel totally confident about the way I learn. I have the perfect overview and make great progress in terms of speed and the grades I get. Thanks, Chris!
I immediately started to enjoy learning again, and my grades soared. All of a sudden, everything went better. I highly recommend Study Smart to all students..
Being able to create my materials online made the process of studying so much smoother and quicker. I no longer have to spend a huge amount of my time on creating my summaries.
At first, my notes were a mess. Now I use Study Smart to take my notes in a perfectly structured way. It helps me to save a lot of time and do other things I enjoy.
Students that study with Study Smart get better grades. The system applies all the learning methods in such a way that both well-performing students and students who struggle perform much better.
Hi Chris, I would like to thank you very much. Last year I scored C on a course, and this year I got an A+ thanks to your method! Thank you very much!
The largest effect is that my child is more enthusiastic about school! Every parent wants their children to be happy at school, Study Smart made it happen.
In high school, I failed several exams, and that has really changed now. I actually needed this tool very much back then. Since I started studying with StudySmart, I haven't had any D's. My average score is now an A and those are results I would have never had in the past
With my old method, I passed only 3 out of 8 courses. Since I started taking my notes digitally in Study Smart, I have passed all my courses on the first try. For me, StudySmart takes away the stress of wondering if I will pass or not.
Thanks to StudySmart, I passed all my exams, and with better grades than before! On top of that, I have mastered a very good study method now, which I am confident will help me earn my degree.
What is the 'adverse selection death spiral'?
This results in the elimination of the health insurance market.
Also known as the 'lemons principle' by Akerlof (1970).
Who is the principal and who is the agent with 'supplier induced demand' (SID)?
What is the problem with SID? (2x)
- Results in: overprovision of health care
Physicians may engage in some persuasive activity to shift the patient’s demand curve
- Goal = own financial benefit
In other words, demand in excess of what would be chosen if patient had available the same information and knowledge as the physician
How do physicians aim to maximize their utility?
What is holding physicians back from fully exploiting their potential of SID?
What are four empirical evidences about SID?
- The extent of SID depends on the type of care.
- The potential for SID is limited because of the marginal increase if supply increases
- The physicians target income plays a role in the amount of SID
- Financial incentives matter
- Fee-for-service: evidence for overprovision
- Capitation: evidence of underprovision
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
Topics that are related to Asymmetric information, agency & supplier induced demand - Asymmetric information & Principal-agent issues in healthcare
-
Asymmetric information, agency & supplier induced demand - Asymmetric information & Principal-agent issues in healthcare - Asymmetric information and agency relationships
-
Asymmetric information, agency & supplier induced demand - Asymmetric information & Principal-agent issues in healthcare - Agency relations in health care
