Competition policy in health care

screencasts

  • We introduce the problem of vertical integration in the Dutch healthcare market, shortly discussing the pros and cons of integration:

part 1

  • We provide two arguments why integration may enhance investment incentives and discuss policy implications:

part 2

  • Now we discuss a model by Rothschild and Stigilitz (1976) of adverse selection in the health insurance market:

part 3

  • Last, we explain the efficiency losses of the model, how regulation can improve outcome in the health insurance market and provides policy implications:

part 4

exercises

In class we discuss question 1 from the exercises.

python

In the python file for this lecture, we consider risk adjustment in health insurance: