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Supplier Discretion over Provision: Theory and an Application to Medical Care.

Abstract:

Suppliers who are better informed than purchasers, such as physicians treating insured patients, often have discretion over what to provide. This paper shows how, when the purchaser observes what is supplied but neither recipient type nor the actual cost incurred, optimal provision differs from what would be efficient if the purchaser had full information, whether or not the supplier can extract informational rent. The analysis is applied to, among other things, data on tests for coronary art...

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Volume:
221
Series:
Discussion paper series
Publication date:
2005-01-01
URN:
uuid:e5264457-ee58-4c8c-8eb3-6c0e72393b45
Local pid:
ora:1260
Language:
English

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